India, May 20 -- Gold prices rebounded by Rs 800 to Rs 1.63 lakh per 10 grams in the national capital on Tuesday, as signs of a breakthrough in US-Iran negotiations eased concerns over inflation pressure.

According to local marketmen, the yellow metal of 99.9 per cent purity rose Rs 800 to Rs 1,63,600 per 10 grams (inclusive of all taxes) from Monday's closing level of Rs 1,62,800 per 10 grams. However, silver prices dropped by Rs 5,000 to Rs 2,71,000 per kilogram (inclusive of all taxes) due to weak industrial demand and subdued trends in the global markets. "Gold prices rebounded on Tuesday as hopes for renewed US-Iran negotiations improved, easing some concerns over prolonged energy-driven inflation pressures," Saumil Gandhi, Senior A...