The relentless rally in gold prices has finally come to an end with the fall of ₹1,564 per 10 gram in the yellow metal prices on Tuesday. It had dropped by ₹611 per 10 grams to ₹55,515 on Monday.

Starting on a weak note, gold prices on Tuesday closed at ₹53,951 per 10 grams after opening at ₹54,528 as investors booked profit with Russia announcing launch of word’s first Covid-19 vaccine.

In global markets, spot gold was down 0.3 per cent to $2,021 per ounce while in US futures market it eased by similar percentage points to $2,034. Further drop in prices was averted by escalating US-China tensions and surging Covid-19 cases.

Notwithstanding minor blips, gold prices have been moving up steadily in last three months and shot up 18 per cent in last three months to the current level from ₹45,785 recorded on May 11.

Yellow metal prices have been rallying on the back of global economic uncertainty unleashed by the pandemic and simmering trade war between the US and China. The stimulus announced by the US Fed to revive economy has weakened dollar against major currencies and pushed up gold prices across globe.

The sharp spike in prices and job losses across sectors had wiped out gold demand in India. The white silver metal followed gold downtrend and dipped by ₹2,397 per kg to ₹71,211 against ₹73,608 logged on Monday. In last two days, silver prices were down by ₹3,802 per kg.

Anuj Gupta, DVP, Angel Broking said it is the right time to book profit in both gold and silver as prices are in over bought zone. In the physical market, he said people are selling their ornaments and bars taking advantage of higher levels.

However, global economic unstability and geopolitical tension between US and China may support bullion in the long run. The approval of first Covid-19 vaccine by Russia’s Health Ministry has also put pressure on bullion, said Gupta.