New Delhi, Jun 17 (PTI) Gold prices plunged by Rs 4,800 to Rs 1.54 lakh per 10 grams in the national capital on Wednesday, while silver dropped by Rs 5,300, as traders stayed away from precious metals amid a strong rupee and weak global trends.

According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity depreciated Rs 4,800 to Rs 1,54,400 per 10 grams (inclusive of all taxes).

It had closed at Rs 1,59,200 per 10 grams in the previous session.

Silver also weakened sharply, falling by Rs 5,300 to Rs 2,55,400 per kilogram (inclusive of all taxes). The white metal had settled at Rs 2,60,700 per kg on Tuesday.

Analysts said domestic demand remained weak for the second straight day as investors chased higher returns amid firm equity markets.

Gold prices declined on Wednesday as investors took a cautious approach ahead of several important US economic events, including the US Federal Reserve’s monetary policy decision, Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.

In the international markets, spot gold slipped marginally to trade at USD 4,327.54 per ounce, while silver fell 0.18 per cent at USD 69.89 per ounce.

“Spot gold is consolidating ahead of the US Federal Open Market Committee’s monetary policy decision due later in the day,” Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.

Meanwhile, market participants are also tracking developments ahead of the scheduled US-Iran meeting on Friday.

“Any progress toward a formal agreement may reduce geopolitical uncertainty, while setbacks could revive demand for the precious metals,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.