On Tuesday, gold and silver prices in India eased after a sharp rise on the previous day. Gold futures on MCX fell below the 38,000-mark in intraday trade to Rs 37,961 per 10 grams of 22 carats, while silver futures fell by 0.12 percent to Rs 47,160 per kilo.

The rates were reflective of the trend in the international market where spot gold was almost flat at $1,497.98 per ounce, after rising as much as 1 percent on Monday.

On Monday, prices of the precious metals in the domestic, as well as global markets, jumped as a reaction to the drone attacks on Saudi Arabia's oil facilities. On Saturday, oil processing facility at Abqaiq and the nearby Khurais oil field were attacked by drone strikes, knocking out 5.7 million barrels of daily crude production or 50 percent of Saudi Arabia's oil output. Abqaiq is the world's largest oil processing facility.

Amid uncertainties, precious metals are often the most preferred safe-haven assets, causing a surge in prices.

On Tuesday, however, attention of the traders moved towards policy decisions of US Federal Reserve and Bank of Japan, both of which are scheduled for release on Wednesday. In July, the Fed lowered rates for the first time since 2008, which means that another cut would hint economic problems in the US.

Market watchers will be keen on Chairman Jerome Powell's press conference, scheduled to follow the release of the central bank's statement, wherein the language used and new economic projections will decide the movement of treasury bonds and the dollar. If the decision goes against market projections, there could be a short-term reversal in gold's recent gains.