Scattered low level buying by retailers helped gold prices to trade marginally higher.
Traders said persistent buying by jewellers and retailers to meet the festive season demand and a firming global trend as the drop to this year's low lured Chinese buyers returning from a week-long break, mainly kept gold prices higher.
Silver also plunged by Rs 1,430 per kg on poor offtake by industrial units and coin makers.
Silver also rose sharply by Rs 640 to Rs 35,700 per kg.
Gold in New York, which normally sets price trend on the domestic front, fell by 0.39 per cent to $1,280.80 an ounce.
Citizens are encouraged to deposit jewellery, bars or coins with banks so it can be refined to meet fresh demand and cut the need for imports
Sentiments remained bullish as gold rose to a two-week high in overseas markets, gaining with other commodities as the dollar weakened, after the US Congress passed the 'fiscal cliff' deal, easing concern that a recovery in the world's biggest economy may be derailed.
Silver coins also spurted by Rs 1,000.
A weak trend was noticed in Mumbai, as gold of 99.9 and 99.5 per cent purity slipped by Rs 60 each to Rs 30,540 and Rs 30,390 per ten gram respectively, while silver lost Rs 200 at Rs 45,600 per kg.
Silver also slumped by Rs 1,700 to Rs 37,200 per kg.
Traders said sentiment remained bearish after gold and silver fell in global markets as the dollar's rally to a 13-month high dampened demand for the precious metal as an alternative investment.
However, silver coins gained Rs 500 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.
Silver also recovered by Rs 515 to Rs 36,750 per kg on increased offtake by industrial units and coin makers.
Silver also dived by Rs 600 to Rs 40,600 per kg.
Silver coins remained unaltered at Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.
Traders said stockists selling against sluggish demand at higher levels mainly pulled down both gold and silver prices.
The precious metal had gained Rs 325 in the previous two sessions.
Marketmen said apart from increased buying by jewellers and retailers to meet upcoming festive season demand, a firming global trend on speculation prices near an eight-month low will spur more buying as the US Federal Reserve begins a two-day policy meeting, also boosted the sentiment.
Silver also rebounded by Rs 360 to Rs 41,770 per kg on increased offtake by industrial units and coin makers.
silver coins held steady at Rs 52,000 for buying.
Gold in New York, which normally set price trend on the domestic front, rose by 0.2 per cent to $1,186.20 an ounce and silver by 1.1 per cent to $15.76 an ounce in Thursday's trade.
The quantum of punishment will be pronounced by the special NIA court on Monday, a spokesperson of the federal agency said.
Silver advanced by Rs 150 to Rs 34,200 per kg on increased offtake.
Silver met with resistance and fell by Rs 200 to Rs 36,000 per kg.
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The current upsurge in gold prices placed the metal to a level last seen on April 10.
Gold in Singapore, which normally sets price trend on the domestic front, rose 0.3 per cent to $1,199.65 an ounce.
Traders said reduced offtake by retail customers on sluggish demand at prevailing higher levels kept pressure on gold prices, while silver rose on fresh buying by industrial units and coin makers amid a firming global trend.
Silver also dropped by Rs 550 to Rs 40,350 per kg.
Silver followed suit and advanced by Rs 50 to Rs 33,750 per kg.
Traders said sentiment turned bearish on emergence of stockists selling at existing higher levels amid weak global trend as improving economic growth reduced demand for the precious metals as an alternate investment.
Globally, gold added 0.4 per cent to $1,228.65 an ounce in Singapore.
Indian overtakes China in gold consumption.
In Zaveri Bazar, gold is being traded at Rs 26,920/10 gm
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Traders said continued selling by stockists in tandem with a weakening global trend, on speculation that the US Fed may begin scaling back monetary stimulus as the economy improves, mainly kept pressure on prices.
Silver also spurted by Rs 1,000 to Rs 37,500 per kg.
Silver ready rose by Rs 350 to Rs 33,850 per kg.
Silver also dropped by Rs 800 to Rs 40,600 per kg on reduced offtake by industrial units and coin makers.
Silver followed suit and traded higher by Rs 200 at Rs 34,200/kg.
Gold prices recovered by Rs 85 to Rs 26,625 per 10 grams at the bullion market.
Traders said profit-selling by stockists at prevailing higher levels amid a weak global trend mainly pulled down both gold and silver prices.
