US House Speaker Nancy Pelosi said on Tuesday she hoped to have a coronavirus aid deal with the White House this week, after speaking with Treasury Secretary Steve Mnuchin.
Gold futures on MCX were down 0.47 per cent or Rs 237 at Rs 50,415 per 10 grams. Silver futures dropped 1.74 per cent or Rs 1,086 to Rs 61,380 per kg.
In the spot market, gold prices rallied Rs 663 to Rs 51,367 per 10 gram in the national capital on Tuesday, in line with the rise in international prices and rupee depreciation, according to HDFC Securities. Silver prices also jumped Rs 1,321 to Rs 61,919 per kilogram.
Globally, gold edged lower in early Asian trade on Wednesday with cautious investors awaiting key takeaways from the first US presidential debate, while optimism over hopes of a US coronavirus aid deal limited losses.
Spot gold was down 0.1 per cent at $ 1,896.03 per ounce by 0034 GMT, having earlier hit a one-week high of $ 1,899.12. US gold futures were down 0.1 per cent at $ 1,889.70. The dollar index was down 0.1 per cent against rivals.
The US recovery from the coronavirus-linked recession has been more robust than expected, New York Federal Reserve President John Williams said on Tuesday, though he added it could be about three years before the economy regains its full strength.
Silver rose 0.2 per cent to $ 24.22 per ounce, platinum fell 0.1 per cent, to $ 883.25 and palladium gained 0.5 per cent to $ 2,319.59.