Gold prices fall Rs 265; silver price slides Rs 786

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Gold price in the national capital declined Rs 265 to Rs 50,616 per 10 grams on Wednesday despite rupee depreciation, according to HDFC Securities. The price of the yellow metal had touched Rs 50,881 per 10 grams on Tuesday. The price of the yellow metal had touched Rs 50,881 per 10 grams on Tuesday.

However, the COMEX spot price of gold was marginally higher at USD 1,705 per ounce compared to USD 1,701 per ounce on Tuesday. Silver price in the national capital fell Rs 786 to Rs 57,244 per kilogram. On Tuesday, the level was Rs 58,030 per kg. Silver price in the national capital fell Rs 786 to Rs 57,244 per kilogram.

On Wednesday, the COMEX spot price of silver was USD 19.45 per ounce compared to USD 19.31 per ounce on Tuesday. "Spot gold prices for 24-carat gold at Delhi were down by Rs 265 per 10 gram reflecting overnight fall in COMEX gold prices despite of rupee depreciation," Tapan Patel, Senior Analyst (Commodities) at HDFC Securities, said.

The rupee declined 30 paise to close at 79.47 (provisional) against the US dollar on Wednesday. Meanwhile, gold prices held strength in the overseas market with gold trading above USD 1,700 per ounce after correcting over stronger dollar following higher than expected inflation in the US in August.

The dollar index rebounded on expectations of larger rate hike from US Federal Reserve in the upcoming meeting. "We expect gold prices to trade sideways to up for the day with COMEX spot gold support at USD 1,690 and resistance at USD 1,720 per ounce. MCX Gold October support lies at Rs 49,900 and resistance at Rs 50,500 per 10 grams," Patel said.