By Anmol Choubey and Sherin Elizabeth Varghese (Reuters) -Gold prices extended declines on Wednesday, following their steepest daily fall since 2020 in the previous session, after an initial recovery gave way to renewed selling with investors locking in profits and a stronger dollar adding pressure.

Gold markets have taken a hit, after extensive queues in Sydney’s CBD fuelled fears of a “bubble”. Spot gold prices fell 6.8 per cent to USD$4,082.35 an ounce on Wednesday morning, from $4,396.60 over Tuesday. It marks the steepest daily decline in five years, since before the Covid pandemic.

Gold’s record-breaking surge cooled as prices dropped over 6% in a single day - the largest sell-off since 2013, following weeks of heavy buying.

Gold rate has been pushed 63 per cent higher this year. However, bullion experts have cautioned about intermittent 'pullbacks' in gold price.

Gold prices tumbled 5% on Tuesday to mark their biggest daily drop in more than a decade as a stunning rally in precious metals came to a halt. Futures for the yellow metal ( GC=F) hovered near $4,141 per troy ounce, while spot gold declined to as low as $4,082, in its biggest one day drop in 12 years, according to Bloomberg data.

In the international bullion market, the price of gold dropped sharply by $85 per ounce, settling at $4,150. In the local market, the price of gold per tola fell by Rs7,538, reaching Rs437,362, while the price per 10 grams decreased by Rs6,463 to Rs343,732.

By Anmol Choubey and Sherin Elizabeth Varghese (Reuters) -Gold prices extended declines on Wednesday, following their steepest daily fall since 2020 in the previous session, after an initial recovery gave way to renewed selling with investors locking in profits and a stronger dollar adding pressure.