Gold prices today plunged back to near Rs 32,000 per 10 grams in Delhi, a level last seen almost two weeks ago.
Decline in gold prices came amid a fall in demand from jewellers and retailers, despite slight recovery in international rates of the precious metal, according to traders.
Gold prices in Delhi fell by Rs 430 to Rs 32,020 per 10 grams at the bullion market, news agency Press Trust of India reported.
Short-covering caused international gold prices to edge higher on Wednesday.
That came a day after gold prices slid to their lowest level this year on surging US bond yields and a stronger dollar.1.
Domestic gold price: Gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 430 each to Rs 32,020 and Rs 31,870 per 10 grams in Delhi respectively.
Gold rates had risen by Rs 165 per 10 grams on Tuesday amid a pick-up in demand from jewellers.( : How gold jewellery is taxed)2.
Domestic silver price: Silver prices came down by Rs 250 per kg to Rs 40,650 per kg.
Silver ready fell by Rs 250 to Rs 40,650 per kg and weekly-based delivery by Rs 190 to Rs 39,850 per kg.( : Should you buy gold)3.
Global gold/silver prices: Spot gold rose 0.3 per cent to $1,293.89 per ounce at 9:00 am, news agency Reuters reported.
In the previous session, gold prices had shed 1.7 per cent, marking the lowest level recorded this year at $1,288.31.
Silver was up 0.4 per cent at $16.29 per ounce.
Silver had the previous day fallen about 1.6 per cent to mark its biggest one-day percentage decline since April 23.( :Revamped SBI Gold Deposit Scheme: Interest Rates, Eligibility And Other Details)4.
The dollar hovered near a five-month high against a basket of currencies, boosted by a surge in the benchmark 10-year Treasury yield after strong US retail data on Tuesday.
Back home, the rupee made some recovery against the US dollar but stayed near 68 - a level last seen in January 2017.5.
A stronger dollar makes greenback-denominated gold more expensive for holders of other currencies, while rising US yields tend to weigh on bullion's non-yielding appeal.