Gold Price: Gold became cheaper, the price of silver also got declined
Silver also declined by Rs 287 to Rs 60,929 per kg on Wednesday, as against Rs 61,216 per kg in the previous trade. Whereas, the rupee on Wednesday gained 9 paise to close at 77.25 against the US dollar.
According to HDFC Securities, gold fell by Rs 231 to Rs 50,646 per 10 grams in the national capital on Wednesday (May 11) due to overnight fall in the precious metal in global markets. In the previous trade, gold had closed at Rs 50,877 per 10 grams.
Gold prices edged lower in early Asian trade as the US dollar traded near its 20-year high despite a minor correction ahead of the release of US inflation data. However, gold was trading at $ 1,850 an ounce and silver at $ 21.69 an ounce on COMEX. HDFC Securities Senior Analyst (Commodities) Tapan Patel said, "Weakness in the dollar index and fall in US bond yields has led to the fall in gold prices."
The rupee on Wednesday closed 9 paise higher at 77.25 against the US dollar, rising for the second day in a row, as the dollar retreated from a 20-year high and bond yields fell below 3 per cent. The possibility of RBI intervention in the futures market and flat trade in most currencies ahead of the release of key US inflation data also supported the rupee.