Gold price, silver rate today: Why is gold rate down on Tuesday? Check latest bullion outlook

Gold price, silver rate fell on Tuesday. In international markets, spot gold was down 1.6 per cent to $4,071.07 per ounce. US gold futures for December delivery fell 0.9 per cent to $4,079.80 per ounce. Spot silver slipped 2.1 per cent to $52.27 per ounce and palladium dropped 1.3 per cent to $1,027.97.

The downward movement in gold rate happened after a US Federal Reserve official claimed that aggressive monetary policy may be needed if inflation continues to rise.

Gold is holding near USD 4,100 per ounce, after rising 1 per cent in the previous session as falling oil prices eased inflation concerns ahead of US inflation data, said Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex.


Brent crude slipped below the USD 90-per-barrel mark in overseas trade on Tuesday, declining USD 2.72, or 3 per cent, to USD 89.85, amid hopes of progress towards ending the US-Iran conflict, he said.

The decline in crude prices has eased some inflation concerns, although movements in the dollar and global bullion markets continue to influence gold's near-term direction.

Analysts said investors are tracking movements in crude oil prices and their potential impact on inflation, ahead of key US inflation data that could provide further clues on the Federal Reserve's interest-rate outlook.

"There is a bitter turnaround on the rate and dollar side. Rates are not falling anymore as before, said UBS analyst Giovanni Staunovo.

The dollar steadied on Tuesday following a bumpy few days, helped by hawkish remarks from Federal Reserve Governor Christopher Waller, with US inflation data due that could lift the currency further if rate hike bets strengthen. Short-dated Treasury yields jumped in London trade on Tuesday after Waller's comments.

The Federal Reserve ought to raise short-term borrowing costs next month even if government data shows inflation cooled last month, Waller said on Tuesday, and should consider an upsized half-point rate hike if the inflation picture worsens.

Traders currently see about a 99 per cent probability that the Fed will raise rates in December after the comment, according to CME's FedWatch tool. Although gold is typically seen as an inflation hedge, higher interest rates tend to reduce the appeal of non-yielding bullion.