Gold Rate: Gold prices have fallen sharply amid the wedding season, with silver also losing its sheen.

News Topical, Digital Desk : Gold and Silver Rate: According to the All India Sarafa Association, gold prices fell by Rs 1,670 to Rs 1,31,530 per 10 grams in the national capital on Tuesday amid weak trends in the international market. The precious metal with 99.9 percent purity had settled at Rs 1,33,200 per 10 grams in the previous market session.

According to the India Bullion and Jewellers Association Limited, 10 grams of 24-carat gold was priced at ₹127,593 on the evening of December 2nd, compared to ₹128,141 in the morning. Silver, meanwhile, was priced at ₹174,650 per kg on the evening of December 2nd, compared to ₹175,423 per kg in the morning. This decline is a welcome relief for buyers amid the wedding season.

Why did gold become cheaper, experts told?

Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities, said, "Gold prices fell on Tuesday as traders booked profits after prices hit multi-week highs in the previous session. Also, traders adopted a cautious stance ahead of important US macro data due later this week, which also contributed to the fall."

Globally, spot gold fell USD 45.17 or 1.07 per cent to USD 4,187 per ounce, while silver fell 1.77 per cent to trade at USD 56.97 per ounce.

"Profit-taking pushed gold to around USD 4,200, while silver fell nearly 2 per cent to USD 57 as investors took a breather after the metal's six-day rally and awaited important US data releases later in the week," said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.

He said the latest US economic data has created a cautious atmosphere, with the Institute for Supply Management reporting that manufacturing contracted for the ninth consecutive month, increasing pressure on the Fed to ease policy.

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