Traders said sustained selling by stockists on the back of sluggish demand mainly kept pressure on both gold and silver prices for the second straight day.
Track and field athletes led India's gold rush on the third day of competitions at the 13th South Asian Games as the country added a whopping 29 medals to jump to the top of the medals tally, in Kathmandu, on Wednesday.
Globally, gold climbed 0.7 per cent to $1,161.85 an ounce in Singapore.
Indians are no more rushing to buy bullion after this week's sharp sell-off
The precious metal had gained Rs 335 in the last two days.
In order to contain current account deficit, the Reserve Bank last month imposed restrictions on gold imports by banks and other authorised agencies.
Gold regained its sheen on Wednesday by soaring Rs 315 to Rs 27,565 per 10 grams at the bullion market.
While gold added Rs 310 to hit the record level, silver rose by Rs 800 to Rs 62,000 per kilogram.
Gold prices plunged to over ten months low by losing Rs 505 to Rs 29,470 per ten gram in the national capital on Thursday on frantic selling by stockists amid restricted buying, driven by a steep fall in overseas markets.
Globally, gold fell by 1.32 per cent to $1,125.40 an ounce and silver by 3.98 per cent to $14.11 an ounce in New York in yesterday's trade.
Gold, which has been on a record setting spree for the past three weeks, rose by Rs 50 to Rs 32,500 per 10 grams.
Gold, which has been on a record setting spree for the past three weeks, rose by Rs 50 to Rs 32,500 per 10 grams.
The impact of currency depreciation can also be mitigated by holding a portion of your investment portfolio in dollar-denominated assets.
According to Ketan Shroff of Pushpak Bullions Pvt Ltd, "Traders are selling at Rs 14,900 -- 14,950 per 10 gm presently, which was Rs 100-150 lower than the landed cost." He added, "The consumer price depends upon customers' needs as some in dire need of money sell at prices lesser than Rs 14,900 per 10 gm while others attract customers through price negotiations."
Govt clamps have resulted in 93% decline in April-November
Silver, however, declined by Rs 220 to Rs 35,180 per kg.
As of now, the custom duty on gold is 10 per cent.
While gold fell by Rs 400 to Rs 28,000 per 10 grams, silver plunged by Rs 1,500 to Rs 43,100 per kg on poor offtake.
Gold prices could go up 12.5 per cent and touch $1,800 per ounce in the second half of 2012, according to the Thomson Reuters GFMS Gold Survey, released in Beijing on Tuesday. Improved investment sentiment for gold will help drive prices up, said the survey. Presently, gold is trading at $1,600.
The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing.
Gold prices declined by Rs 30 to Rs 27,370 per ten gram in New Delhi on Friday as demand from jewellers retailers dried up at prevailing levels to some extent amidst a weak global trend.
