Gold falls to Rs 38,905 per 10 gm on weak demand

New Delhi: Gold prices declined by Rs 150 to Rs 38,905 per 10 gram in the bullion market here on Tuesday due to weak demand, according to HDFC Securities.

Likewise, silver also fell Rs 290 to Rs 48,028 per kilogram from Monday's closing price of Rs 48,318 per kilogram, it said.

HDFC Securities Senior Analyst (Commodities) Tapan Patel said gold prices for 24 Karat in Delhi was trading down by Rs 150 due to weak spot demand despite fall in rupee.

On Monday, gold prices closed at Rs 39,055 per 10 gram in the national capital. In the international market, gold was trading lower at $1,497 an ounce in New York and silver was also quoting down at $17.81 per ounce.

"International gold prices pared previous gains after rallying on geopolitical risk. Gold prices have maintained the narrow trading range awaiting development from US-China trade talks and US FOMC rate decision," he added.

Meanwhile, the rupee fell 28 paise to 71.88 against the $ in early trade on Tuesday.