The dollar index rose 0.1 per cent against its rivals. Meanwhile, total Covid-19 patient count in India topped 9 lakh, the third highest in the world, with over 23,700 deaths. Due to this many states have increased restrictions on businesses and movement, threatening economic recovery.
Gold futures were down 0.48 per cent or Rs 236 at Rs 48,912 per 10 grams. Silver futures dipped 1.17 per cent or Rs 622 to Rs 52,426 per kg.
Gold prices jumped Rs 120 to Rs 49,960 per 10 gram in the national capital on Monday following gains in global prices, according to HDFC Securities. Silver also rose by Rs 858 to Rs 53,320 per kg.
Globally, gold prices slipped below the key $1,800 level on Tuesday, as the U.S. dollar strengthened, although worries over surging coronavirus cases globally and Sino-U.S. tensions put a floor under bullion prices.
Spot gold was down 0.3 per cent at $1,797.45 per ounce by 0232 GMT. U.S. gold futures fell 0.8 per cent to $1,799.60.
Reflecting increased investor interest in gold, holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, rose 0.3 per cent to 1,203.97 tonnes on Monday.
Market participants now await release of data on Chinese gross domestic product, retail sales, industrial output, and exports.
Elsewhere, palladium slipped 0.4 per cent to $1,971.78 per ounce, while platinum rose 0.3 per cent to $831.05. Silver dropped 0.5 per cent to $18.98 per ounce, after hitting its highest since September 2019 on Monday.