Gold Silver Price: Gold fell by Rs 340 to Rs 87960 per 10 grams, silver strengthened by Rs 600

According to the All India Sarafa Association, the gold price in the national capital on Wednesday fell by Rs 340 to Rs 87,960 per 10 grams following a weak trend abroad. The precious metal of 99.9 percent purity had closed at Rs 88,300 per 10 grams on Tuesday.

The price of gold with 99.5 percent purity also fell by Rs 340 to Rs 87,560 per 10 grams. Gold had closed at Rs 87,900 per 10 grams in the previous trading session. However, the price of silver rose by Rs 600 to Rs 97,200 per kg on Wednesday.

Meanwhile, the price of gold contract for April delivery in futures trading on MCX fell by Rs 659 or 0.77 percent to Rs 84,864 per 10 grams. Jatin Trivedi, Vice President of Research Analyst- Commodity and Currency, LKP Securities, said, "After a strong rally in gold, prices weakened in both Comex and MCX. The fall in gold on MCX indicates some short-term pressure."

He said the US Consumer Price Index data, which will be announced today, will be important in assessing the interest rate trend and may influence the movement of gold. In the international markets, Comex gold futures fell by $ 26 an ounce to $ 2,906.60 an ounce.

"Gold prices fell on Wednesday as expectations of an aggressive rate cut eased after Federal Reserve Chairman Jerome Powell indicated there was no immediate need for further rate cuts on the first day of testimony before the US Congress," said Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities.

Also, Powell has said that the central bank will not rush to cut interest rates, indicating patience in the process. US Treasury yields rose following his comments, which also had a negative impact on gold prices. Comex silver futures fell 0.56 percent to $32.14 an ounce in Asian markets.