After two consecutive sessions of gains, gold and silver prices fell in the bullion market on Tuesday. Gold fell by Rs 960 to Rs 1.57 lakh per 10 grams, while silver prices also saw a sharp decline. Silver fell by more than Rs 2,600 to Rs 2.61 lakh per kilogram.

Why Precious Metals Under Pressure

Gold and silver came under pressure as the US dollar recovered from its lowest level in more than a week in the international market. Investors are awaiting key US employment and inflation data to be released this week. These data may provide clues about the Federal Reserve's future interest rate direction.

Spot gold prices fell about 1% to $5,016.56 per ounce. Previously, gold had risen about 2% in the previous session due to the dollar's weakness. It is worth noting that on January 29, gold reached a record high of $5,594.82 per ounce. Meanwhile, US gold futures for April delivery fell 0.8% to trade at $5,041.60 per ounce.

Silver also saw a sharp decline

Silver prices fell more than gold. Spot silver fell 2.5% to $81.31 per ounce. Prior to this, silver had risen nearly 7% in the previous session. On January 29, silver had also reached an all-time high of $121.64 per ounce.

State of the Domestic Bullion Market

Silver prices saw a sharp rise in the domestic bullion market on Monday. Silver rose 6.66% to reach ₹2.72 lakh per kilogram. The price of 99.9% pure gold also rose ₹1,300 to reach ₹1.58 lakh per 10 grams.

What were the prices on MCX?

Both gold and silver saw strength on MCX on Monday. MCX Gold futures for April closed higher by Rs 2,943, or 1.89%, at Rs 1,58,394 per 10 grams. MCX Silver futures for March closed higher by Rs 12,853, or 5.14%, at Rs 2,62,745 per kg.