Futures of gold and silver which were touching new highs every other day lately have started to falter in line with international markets and traders booking profits. The fall in gold prices, which is considered as a safe haven asset, has also been induced post Russia's announcement that it has developed the first vaccine for novel coronavirus.
Gold futures slumped for the second straight day on Wednesday. Currently, the October contract of gold on the Multi-Commodity Exchange (MCX) is trading at Rs 51,672 per 10 gram, lower by Rs 257 or 0.49 per cent from its previous close.
It has, however, recovered from the day's low of Rs 49,955 per 10 gram.
The slump was in line with the international spot prices where gold prices fell as US bond yields advanced and the dollar recovered.
Analysts, however, are of the view that the sentiments in the bullion market are still bullish and the yellow metal would soon be back on the upward trend.
Futures of silver, which surged to record levels after crossing Rs 70,000 per kilogram mark, have declined below the Rs 66,000 mark.
The September contract of silver is trading at Rs 65,758 per kg, lower by Rs 1,176, or 1.76 per cent from its previous close.