Gold prices fall Rs 420 on stronger rupee

Gold prices corrected by Rs 420 to Rs 41,210 per 10 gram in the national capital on Tuesday amid a stronger rupee and profit-booking in international market for precious metal, according to HDFC Securities.

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Silver prices also plummeted by Rs 830 to Rs 48,600 per kg from Rs 49,430 per kg on Monday. Gold hit its all-time high level on Monday and later closed at Rs 41,630 per 10 gram. HDFC Securities Head - Advisory (PCG) Devarsh Vakil said, "Stronger rupee and profit-booking in international gold prices affected the domestic rates. Traders are optimistic about better demand after January 15 as marriage season and festive demand starts."

The rupee appreciated by 22 paise to 71.71 against the US dollar in early trade on Tuesday. In the international market, gold was trading lower at USD 1,568 per ounce, while silver was also quoting down at USD 18.19 per ounce. "Near term focus will remain on the US-Iran tensions and US-China trade deal. Any uncertain outcome will lead to higher bullion prices," Vakil added. 

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