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Easing geopolitical tensions reduced gold’s safe-haven demand, reducing the yellow metal’s price by ₹500 to ₹1,00,420 per 10 grams in the national capital on Tuesday, as per the All India Sarafa Association.

The precious metal of 99.9 per cent purity had ended at ₹1,00,920 per 10 grams in the previous market session.

In the national capital, gold of 99.5 per cent purity dipped ₹450 to ₹1,00,050 per 10 grams (inclusive of all taxes) on Tuesday. It had closed at ₹1,00,500 per 10 grams on Monday.

"Gold prices cooled down, as peace talks between (US) President Donald Trump and (Ukraine) President Volodymyr Zelenskyy brought some hope for ending the war in Ukraine during a meeting at the White House, with European and NATO leaders also in attendance," observed Abans Financial Services CEO, Chintan Mehta.

 

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Some traders also opined that the Indian government’s tweaking of GST rules was also weighing on the domestic gold prices.

"Weakness in the USD/INR pair on the Indian government tweaking GST rules is weighing on the domestic gold prices," said Praveen Singh, Head of Commodities and Currencies, Mirae Asset Sharekhan.

In addition, silver prices declined ₹1,000 to ₹1,14,000 per kilogram (inclusive of all taxes) on Tuesday, as per the Association.

The white metal had settled at ₹1,15,000 per kg in the previous market session.

In international markets, spot gold went up 0.15 per cent to trade at USD 3,337.92 per ounce in New York.

"Gold prices declined below USD 3,380 per ounce as investors turned their attention towards US Federal Reserve Chair Jerome Powell's forthcoming statements at the Jackson Hole Symposium as well as minutes from the Fed's most recent meeting," Renisha Chainani, Head, Research, Augmont, said.

Spot silver was trading at USD 38.09 per ounce, up 0.19 per cent.

"On the macro front, US housing market data, which includes building permits and housing starts, will be released later in the day, which may provide volatility in US dollar and gold prices during the session," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.