Domestic Gold and silver prices witnessed a sharp fall on Tuesday, ahead of Dhanteras.

In early trade, at Multi Commodity Exchange (MCX) gold delivery for December contract fell Rs 2,500 to Rs 49,665 per 10 gram. Meanwhile Silver futures for December delivery dropped Rs 4,600 to Rs 60,725 per kg.

However, price corrected at 10.19 am on MCX, gold delivery for December contract rose 1.28 percent or Rs 637 to Rs 50446 per 10 gram. Meanwhile Silver futures for December delivery rose 2.34 percent or Rs 1422 to Rs 62365 per kg.

Gold slumped more than 4% on Monday as news of the first successful late-stage COVID-19 vaccine trials prompted investors to dump safe-haven bullion and flock to riskier assets instead.

In the national capital, gold prices rose for the fourth consecutive day on Monday, gaining Rs 277 to Rs 52,183 per 10 gram. In the previous trade, the yellow metal had closed at Rs 51,906 per 10 gram.

Silver prices also jumped Rs 694 to Rs 65,699 per kilogram from Rs 65,005 per kilogram in the previous trade.

Pfizer Vaccine optimism on COVID-19

Gold beat a sharp retreat on Monday, sliding 2% after Pfizer said its vaccine was more than 90% effective in preventing COVID-19 based on initial data from a large study, sending stock markets soaring and denting safe-haven bullion`s appeal, a Reuters report said. Spot gold slipped 1.8% to $1,917.22 per ounce by 1227 GMT. The decline erased gains from the metal`s climb to a near eight-week peak at $1,965.33 earlier in the session, which was driven by a weak dollar amid hopes for more stimulus following Joe Biden`s victory in the U.S. elections. U.S. gold futures dipped 1.8% to $1,916.70.

Limiting gold`s declines and keeping it above $1,900, the dollar index steadied but held close to a more than 10-week low, bolstering appeal for gold among those holding other currencies. Silver too joined gold`s slide, falling 2.6% to $24.93 per ounce. Platinum fell 0.9% to $880.75, while palladium fell 1.8% to $2,446.24.