Gold and silver prices in India today gave up early gains to move lower, extending the previous session's sharp fall. On MCX, gold futures fell 0.14% to 50,400 per 10 gram while silver futures declined 0.5% to 61,011 per kg. In the previous session, gold had slumped 2.4% or 1,200 per 10 gram while silver had crashed 9.3% or 6,300 following an overnight slump in global rates.

In global markets, gold prices today inched higher after slumping over 3% in the precious session. Spot gold today rose 0.3% to $1,918.20 per ounce. In the previous session, gold had fallen to over a month low of $1,882.70 as the US dollar soared to an almost six-week high. A firmer dollar makes bullion more expensive for holders of other currencies.

Analysts say that gold was today supported by economic concerns over fresh coronavirus-induced restrictions in many parts of Europe. The dollar index also slipped against rivals, after rising to its highest in more than a month on Monday.

Gold, which is often used as a safe store of value during times of political and financial uncertainty, has risen nearly 26% this year.

Among other precious metals, silver today gained 1.1% to $25 per ounce, platinum was up 0.6% to $886.20 and palladium rose 0.5% to $2,285.44.

Stocks and other assets including gold sold off on Monday on concerns over renewed lockdown measures in Europe as well as the United States' inability to agree on fiscal stimulus that would support millions of unemployed. Analysts say that investors also also turned to the safety of the US dollar as the opening of a U.S. Supreme Court vacancy fueled concern about the increasingly contentious American presidential election.

Further focus may also be on virus related development along with development related to US-China tensions, Brexit negotiations and US fiscal stimulus which may affect US dollar as well as general risk sentiment and thereby trend in commodities, including gold, Kotak Securities said in a note.

US Fed chairman Jerome Powell said on Monday that the US central bank remains committed to using all the tools at its disposal to help the U.S. economy recover from the blow delivered by the coronavirus pandemic.