New Delhi, February 17 Precious metal prices declined by 2% in the national capital on Tuesday, with silver falling to Rs 2.45 lakh per kilogram and gold dropping to Rs 1.57 lakh per 10 grams due to weak global cues and subdued demand.
According to the All India Sarafa Association, the price of white metal decreased by Rs 5,000, or 2%, to Rs 2,45,000 per kilogram (inclusive of all taxes) from Monday's closing level of Rs 2,50,000 per kg.
In the bullion market, gold of 99.9% purity depreciated by Rs 2,200, or 1.4%, to Rs 1,57,000 per 10 grams (inclusive of all taxes). The yellow metal closed at Rs 1,59,200 per 10 grams in the previous session.
"Gold and silver prices fell on Tuesday as low liquidity from Asian market holidays combined with softer US inflation data fueled expectations of future Federal Reserve rate cuts," said Kaveri More, Commodity Analyst at Choice Broking.
In the international market, spot silver slipped by USD 1.65, or 2.15%, to USD 74.96 per ounce, while gold was trading 1.04% lower at USD 4,938.70 per ounce.
"Spot gold extended its decline for the second straight day as investors adopted a cautious stance ahead of the US-Iran talks beginning in Geneva on Tuesday," said Praveen Singh, Head of Commodities and Currencies, Mirae Asset ShareKhan.
Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said that gold's "fragile hold" above the USD 5,000-mark gave way to renewed selling pressure on Tuesday, as support for the metal weakened with the start of China's Lunar New Year holidays.
He noted that the absence of Chinese participation -- one of the key demand drivers -- has reduced buying interest and left prices vulnerable to downward pressure.
"Liquidity conditions remain thin across metals, and unless speculative sentiment re-emerges decisively, price action is likely to stay confined within relatively narrow ranges in the near term," Gandhi added.
Market participants' focus is now shifting to the US ADP employment report and key geopolitical developments, including US-led negotiations between Russia and Ukraine. The outcome will have important implications for risk sentiment and the demand for safe-haven assets, he said.