India’s manufacturing activity grew for the first time in five months with indicators such as demand for energy and fuel, rail freight transport and mobility indices also showing improvement. The United States also reported strong data on manufacturing activity.
Gold futures on MCX were down 0.34 percent or Rs 175 to Rs 51,387 per 10 grams. Silver futures fell 1.15% or Rs 812 to Rs 70,078 per kg.
The price of gold rose 418 rupees to 52,963 rupees per 10 grams in the national capital on Tuesday after a rally in the yellow metal on the international market, according to HDFC Securities. Silver also attracted great buying interest as it jumped Rs 2,246 to Rs 72,793 per kilogram.
Globally, gold prices fell as the dollar rallied after strong US manufacturing data bolstered hopes for a global economic recovery, dampening the appeal of safe-haven bullion.
Spot gold fell 0.3 percent to $ 1,964.75 an ounce at 0251 GMT, after hitting its highest level since Aug. 19 at $ 1,991.91 on Tuesday. US gold futures fell 0.4 percent to $ 1,971.80.
Fed Governor Lael Brainard said Tuesday that the US central bank would need to implement more stimulus to deliver on its new promise of higher job growth and higher inflation.
Low interest rates reduce the opportunity cost of holding non-performing bullion, which is also considered a hedge against inflation and currency degradation.
Spot gold may fall to $ 1,938 after failing to break resistance at $ 1,996 an ounce, Reuters technical analysts Wang Tao said.
Elsewhere, silver was down 0.2 percent to $ 28.11 an ounce, platinum was down 0.3 percent to $ 937.87 and palladium was down 0.5 percent to $ 2,260.56. .
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