Gold plunged by Rs 120 to Rs 30,810 per ten gram, while silver lost Rs 280 to Rs 49,670 per kg on falling demand among industrial units and coin makers.
While gold surged by Rs 230 to Rs 28,480 per 10 grams, silver gained Rs 250 to Rs 44,600 per kg on increased offtake.
The Vedanta group, the eighth largest mining and metal company in the world, is all set for a gold rush in India.
Analysts say investors should increase their exposure to gold up to 10% of their portfolio, depending on their comfort with a 2-year horizon. But avoid investing in physical gold or deposit schemes run by jewellers
Gold imports, which peaked at 162 tonnes in May, came down to 19.3 tonnes in November.
Silver followed suit, which traded lower by Rs 260 to Rs 38,540 per kg.
India's annual gold consumption is about 800-900 tonnes, of which about 750 tonnes is imported. However, in 3-5 years, domestic refineries would meet the whole demand, reports Rajesh Bayani.
Bullion traders said sustained buying by jewellery fabricators and retailers to meet the festive season demand mainly kept precious metal prices higher.
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Gold in Singapore, which normally set price trend on the domestic front, fell by 0.28 per cent to Rs 1361.80 and silver by 1.90 per cent to 22.75 dollar an ounce.
People can deposit idle gold with authorised agencies and take advantage of the price escalation of gold as well as earn interest on the deposit.
Gold price is likely to remain sideways this week due to uncertainty in global economy. The metal, of late, has started losing its status as safe haven investment avenue at the time of global economic crisis.
Silver also met with resistance after four days of gains, and lost Rs 750 at Rs 44,250 per kg.
Silver also rose sharply by Rs 640 to Rs 35,700 per kg.
As per a data released on Monday by the government, gold and silver imports during April jumped by 138 per cent to $7.5 billion against $3.1 billion in the year-ago period.
Globally, gold lost 0.8 per cent to $1,154.60 an ounce.
The worsening demand for jewellery has already started impacting jobs and karigars or goldsmiths.
The world's first gold vending machine unveiled at Abu Dhabi's Emirates Palace hotel, began attracting customers minutes after it was opened.
The government's move to make hallmarking for gold mandatory from January 1, 2008 has got into bottlenecks thanks to lukewarm response from jewelers across the country.
And these are trends we'd love to see again in 2024.
The yellow metal on Wednesday hit a new record at the New York Mercantile Exchange at $1,148.10 an ounce (28.34 grams) for the December delivery following a 0.37 per cent dip in the dollar index.
Silver, however, found some buying support.
The precious metal had gained Rs 435 in the previous three sessions.
Traders said sentiment in gold remained bearish as the metal extended a decline from the highest level in more than three months in global markets amid expectations that Federal Reserve minutes will show policy makers backing further stimulus cuts.
Gold is the first product for options trading that markets regulator Sebi has allowed after 14 years of commodity exchanges in the country.
Stung by the steep fall in demand for the yellow metal in the world's largest consumer nation, the World Gold Council is now falling back on the familiar marketing mantra: If customers aren't coming, go to their doorsteps. The reason for the marketing overdrive by the Indian arm of the WGC is simple: India, which used to import around 60 tonnes of gold a month till last year, has seen zero imports in the past two months because of the prevailing high prices.
Diversion of funds towards the surging equity weighed on the precious metal's price
Central bank says it may bring more curbs.
Spot gold was bid lower at $ 1,298 an ounce in early European trade.
Gold has been a valuable and highly sought-after precious metal for coinage, jewellery, and other arts since long before the beginning of recorded history.
Nearly two-thirds of India's gold demand comes from rural areas where jewellery is a traditional store of wealth for millions who have no access to the formal banking system.
More than 3,000 gifts for Lord Ram from Sita's birthplace in Janakpur in Nepal have arrived in Ayodhya.
An alert has been issued by the Directorate of Revenue Intelligence, lead agency to check smuggling and customs duty evasion, to all international transit points across the country, official sources said.
The retailers are also mulling putting a stop to selling of gold coins and gold bars to curtail investments made in gold, according to an official of trade body All India Gems and Jewellery Trade Federation.
The hallmarking of gold, which is voluntary in nature at present, is a purity certification of the precious metal.
In the July-September period of this year, the domestic demand improved mainly due to Diwali demand and the upcoming marriage season.
Traders said stockists booking profits at prevailing higher levels following a rise of Rs 350 against sluggish demand mainly kept pressure on gold prices.
Sentiments remained bearish as gold and silver tumbled to the lowest since June in global markets as US manufacturing in August expanded at the fastest pace in three years, bolstering prospects for the economy and dampening demand for the metal, traders said.
Gold bullion purchases across Asia slowed this week as a long rally in prices discouraged buyers.
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Silver met with resistance at prevailing levels.
