NEW DELHI: Gold prices declined Rs 650 to Rs 96,850 per 10 grams in the national capital on Wednesday amid a weak trend in global markets, according to the All India Sarafa Association.

The precious metal of 99.9 per cent purity had closed at Rs 97,500 per 10 grams in the previous market session.

Gold of 99.5 per cent purity depreciated Rs 700 to Rs 96,400 per 10 grams (inclusive of all taxes). It had settled at Rs 97,100 per 10 grams on Tuesday.

"Gold prices continue to correct as trade tensions ease, with major economies securing trade agreements with the US. China is the latest to strike a deal, as both countries agreed to a 90-day reduction in tariffs on each other's goods," Abans Financial Services' Chief Executive Officer Chintan Mehta said.

Extending the losses for the third straight day, silver prices plunged Rs 1,450 to Rs 98,000 per kg (inclusive of all taxes) on Wednesday. The white metal had ended at Rs 99,450 per kg in the previous close.

However, geopolitical tensions in the Middle East remain elevated, keeping underlying support for safe-haven asset, Mehta said.

Spot gold in the global markets dipped USD 20.65 to USD 3,229.64 per ounce.

"Gold is currently trading around USD 3,230 per ounce, supported by further signs of easing US-China trade tensions after the Trump administration announced plans to lower the "de minimis" tariff threshold for low-value Chinese shipments to as low as 30 per cent," Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, said.

Investors are awaiting US macroeconomic data, including producer price index and retail sales data, on Thursday for further clues on inflationary trends and consumer spending, she added.