Gold prices slip ₹340 to ₹87,960 per 10 gm amid weak global cues; silver gains ₹600

On Tuesday, the precious metal of 99.9% purity had ended at ₹88,300 per 10 grams.

Gold of 99.5% purity also depreciated ₹340 to ₹87,560 per 10 grams. It had closed at ₹87,900 per 10 grams in the previous trading session.

However, silver prices increased ₹600 to ₹97,200 per kg on Wednesday.

"Gold took a breather after its strong rally, with prices weakening in both Comex and MCX. MCX gold dropped indicating some short-term pressure," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.

The US Consumer Price Index data, to be announced later in the day, will be crucial in assessing the interest rate trend, which could influence gold's movement, he said.

In the international markets, Comex gold futures fell $26 per ounce to $2,906.60 per ounce.

"Gold dropped on Wednesday, weighed down by dimmed expectations of an aggressive rate after Federal Reserve Chair Jerome Powell signalled no urgency for further interest rate cuts on his first day of testimony to US Congress," Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said.

Further, Powell has stated that the central bank will not rush to cut interest rates, indicating patience in the process. Following his remarks, the US Treasury yield increased, which also negatively impacted gold prices.

Comex silver futures in the Asian market hours slipped 0.56% to $32.14 per ounce.