Yesterday due to the weaker dollar index and local buying trend which got a boost from the wedding season demand, gold of even 22K purity from which jewellery is designed also moved higher in price to cross Rs. 30000 levels.
But in today's trade, the yellow metal has lost its sheen after straight four months of price increase as the 22K gold traded at Rs. 29980, a straight decline of Rs. 250 in value.
24 K gold traded at Rs. 32705 with declines of Rs. 273 against the earlier price of Rs. 32978 for 10gm of gold.
This has mainly come in on the backdrop of the Indian currency taking at hit to fall in value to 2-months low. Meanwhile there has been a bounce in the dollar currency.
Investors also await the Fed minutes which are due tomorrow for clues in respect of interest rates outlook in the US.
Gold futures in the US markets also were hit the worst in 2-weeks with a decline of 1%.
Any increase in the interest rates would dampen the demand for the yellow metal.
On the other hand, silver gained in price by Rs. 1000 per kg to trade at Rs. 41600 in trade today.