Gold, silver prices drop after jump in previous session

In the United States, all eyes are now on Fed Chair Jerome Powell's speech at the annual Jackson Hole, Wyoming, symposium where the taper plan of the country's central bank will be revealed.

The prices of gold and silver dropped on Tuesday after a strong jump in Monday's session. The MCX showed on Tuesday morning that gold slipped 0.19 per cent to reach ₹47,495 per 10 gram while silver futures dipped 0.2 per cent to ₹62,798 per kg.

Spot gold eased 0.2 per cent to $1,801.65 per ounce.

Spot gold eased 0.2 per cent to $1,801.65 per ounce, having jumped about 1.4% in the previous session. The prices of silver were up by nearly 2 per cent in the previous session.

But even after the drop, gold prices are still hovering above the key psychological level of $1,800, as the looming threat from the Delta variant of coronavirus fanned expectations that the US Federal Reserve might delay dialling back its pandemic-era stimulus.

All eyes are now on Fed Chair Jerome Powell's speech at the annual Jackson Hole, Wyoming, symposium where the bank's taper plan will be revealed.

"The $1,850 level is everything for gold and if after the Jackson Hole Symposium, prices can't make a fresh August high, bullion investors might be quick to the sidelines," Edward Moya, senior market analyst at OANDA said in a note.

(With inputs from agencies)