The yellow metal has multiple significance like religious connotations, family heirloom, gifts, status symbol, investment among other purposes.
HDFC Securities has said that the gold prices in New Delhi plunged by Rs 1,317 to Rs 54,763 per 10 grams on Tuesday in line with a drop in international prices of the precious metal and a rupee appreciation.
Further, the dollar’s relative value recovery against other currencies also pushed the gold prices to a downward direction.
In the previous trade, the precious metal had closed at Rs 56,080 per 10 gram.
Gold has been one of the most consistent gainers in the past six months, especially in the coronavirus-hit economy. This has also led the investors to put additional investments into the yellow precious metal as they continue to seek safe location to park their money with interest rates at or near zero.
Meanwhile, Silver also declined Rs 2,943 to Rs 73,600 per kg from Rs 76,543 per kg in the previous trade, said the HDFC Securities.
The rupee appreciated 12 paise to close at 74.78 (provisional) against the US dollar on Tuesday, tracking weakness in the greenback and gains in the domestic equity market.
In the international market, gold was trading lower at $1,989 per ounce and silver also witnessed selling and was quoting down at $27.90 per ounce.