Gold declines Rs 105; silver tumbles Rs 379

Gold price in the national capital declined Rs 105 to Rs 56,780 per 10 gram on Tuesday amid weak global cues, according to HDFC Securities. The precious metal had closed at Rs 56,885 per 10 gram in the previous trade.

Silver also tumbled Rs 379 to Rs 68,418 per kg.

"Spot gold prices in the Delhi markets traded at Rs 56,780 per 10 gram, down Rs 105 per 10 gram," said an analyst at HDFC Securities.

In the overseas market, both gold and silver were trading in the red at USD 1,913 per ounce and USD 23.27 per ounce, respectively.

Comex gold prices traded lower in Asian trading hours on Tuesday on the back of traders unwinding their position ahead of the US Federal Open Market Committee (FOMC) meeting scheduled for February 1, the analyst said.

"Market participants are also expecting a 25 basis points rate hike (by US Fed) this year. However, comments from Governor Jerome Powell regarding inflation and growth of economy will be important to watch.

"Policy meet from BOE (Bank of England ) and ECB (European Central Bank) is also scheduled later this week, where a rate hike of 50 basis points is expected from both," Navneet Damani, Senior VP - Commodity Research at Motilal Oswal Financial Services said.

Market participants are expecting an import duty cut on gold in Union Budget 2023-24. "However, we will have to wait for an official announcement regarding the same," Damani said.