Gold, silver prices drop after jump in previous session
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, 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.
Traders are also monitoring President Joe Biden's $4.1 trillion economic agenda, with key votes due in the House of Representatives.
(With inputs from agencies)