However, silver prices rose Rs 2,000 to hit a two-week high of Rs 87,000 per kilogram on Thursday.
The silver metal had closed at Rs 85,000 per kg in the previous session.
In the last three sessions, the white metal has gained Rs 3,200 per kg.
Meanwhile, gold with 99.5 per cent purity also declined by Rs 250 to Rs 74,000 per 10 grams from the previous close of Rs 74,250 per 10 grams.
Traders said silver continued its strong trend for the third consecutive session due to strong industrial demand that led to a rise in metal prices. In international markets, Comex gold was trading 0.21 percent higher in US Dollar $2,547.70 an ounce. “Comex gold rose to a weekly high of $2,558 an ounce, but retreated after the release of the inflation report, as market sentiment adjusted to the likelihood of a small interest rate “Food prices have been cut by the US Federal Reserve,” said Kaynat Chainwala, assistant vice president, commodity research, Kotak Securities.
Silver also rose to $29.16 an ounce on global markets.
“Traders will closely monitor US macroeconomic data such as producer prices. index (August) and jobless claims,” said Praveen Singh, associate vice president of fundamental currencies and commodities at BNP Paribas’ Sharekhan.
In addition, this data could affect expectations regarding the path of interest rates in the United States, which in turn will affect the prices of gold and the US dollar (USD).
In addition, the European Central Bank Bank Thursday’s ECB meeting could have a bigger impact on the price of the precious metal, depending on how much easing the ECB decides to implement, Singh added.
“US Treasury yields rose, while the dollar pared early losses that weighed on gold prices.
“Traders have virtually eliminated bets on the US central bank cutting interest rates this month,” said Saumil Gandhi, senior commodity analyst at HDFC Securities.
According to Maneesh Sharma, Assistant Vice President, Commodities and Currencies, Anand Rathi Actions and Stockbrokers, gold is expected to remain volatile at higher levels while consolidating above USD 2,500 per ounce in international markets.
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