New Delhi: Gold prices fell by Rs 700 to Rs 73,500 per 10 gram in the national capital on Monday amid a fall in the prices of the precious metal in global markets. On Friday, the yellow metal had closed at Rs 74,200 per 10 gram. Like gold, silver prices also fell by Rs 2,000 to Rs 83,800 per kg on Monday due to weak demand from industrial units and coin makers, according to All India Sarafa Association. Silver had closed at Rs 85,800 per kg in the previous session.

Domestically, traders attributed the fall in yellow metal prices to sluggish demand from local jewellers amid weak trend overseas. Globally, Comex gold was trading 0.07 per cent lower at $2,522.90 an ounce.

HDFC Securities Senior Analyst (Commodity) Saumil Gandhi said, "The US employment data was lower than expected. This increased the uncertainty about how much the US central bank will cut interest rates in the upcoming meeting. Due to this, the price of gold fell on Monday."

According to Manav Modi, Senior Analyst (Commodity Research), Motilal Oswal Financial Services, traders are waiting for this week's US macroeconomic data reports, including inflation and producer price index (PPI), to gauge the Federal Reserve's next move on interest rates.

However, silver prices in the international markets traded with marginal gains at $28.44 an ounce. "Despite efforts by Treasury Secretary Janet Yellen to ease fears, gold remained steady as traders await US inflation data this week amid recession concerns," said Kaynat Chainwala, AVP-Commodity Research, Kotak Securities.

Yellen said there was no "threat" to the financial system. She reiterated that the US economy has reached a soft landing, even though employment growth is weakening. Key policy decisions by the US Federal Reserve next week will determine the further direction for precious metal prices, said Manish Sharma, AVP, Commodities & Currencies, Anand Rathi Shares & Stock Brokers.