Meanwhile, gold with 99.5 per cent purity also remained stable at Rs 74,000 per 10 grams.
Traders attributed the fall in silver prices to poor acceptance by industrial units and global influences.
In international markets, Comex gold is quoted at US Dollar 2,542.20 per ounce, down USD 10.70 per ounce or 0.42 percent.
“Gold prices edged lower during European trading hours on Wednesday, on the back of a rebound in the US dollar,” said Saumil Gandhi, senior commodity analyst at HDFC Securities. According to Kaynat Chainwala, executive vice president – commodity research at Kotak Securities, gold on Comex is trading above $2,500 an ounce, supported by the FOMC meeting minutes, which reinforced expectations of a rate cut in September. Rising geopolitical tensions, particularly the escalating conflict between Israel and Hezbollah, also boosted gold prices as a safe-haven asset, Chainwala said. Silver was also trading lower at $29.93 an ounce in global markets.
Last week, Federal Reserve Chairman Jerome Powell, in his remarks at the Jackson Hole Symposium, also signaled a rate cut at the next meeting, which would support bullion prices.
With gold holding above the critical USD 2,500 per ounce mark, gold is on track for its best performance since 2020, driven by optimism around potential US rate cuts and ongoing geopolitical tensions in the Middle East, said Prathamesh Mallya, DVP-Research, Non-Agri Commodities and Currencies, Angel One.
According to Navneet Damani, senior vice president of the raw materials research group at Motilal Oswal Financial ServicesInvestors are waiting for the publication of the Personal Consumption Expenditure (PCE) price index Data, a key inflation report and the Fed’s preferred inflation gauge, due on Friday, which may provide fresh insights into the health of the U.S. economy and further direction for gold prices.
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