Silver coins also spurted by Rs 1,000.
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 also slumped by Rs 1,700 to Rs 37,200 per kg.
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 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 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.
Silver also recovered by Rs 515 to Rs 36,750 per kg on increased offtake by industrial units and coin makers.
The precious metal had gained Rs 325 in the previous two sessions.
However, silver coins gained Rs 500 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.
Traders said stockists selling against sluggish demand at higher levels mainly pulled down both gold and silver prices.
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 coins held steady at Rs 52,000 for buying.
Silver also rebounded by Rs 360 to Rs 41,770 per kg on increased offtake by industrial units and coin makers.
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.
Silver met with resistance and fell by Rs 200 to Rs 36,000 per kg.
Silver advanced by Rs 150 to Rs 34,200 per kg on increased offtake.
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.
Gold in Singapore, which normally sets price trend on the domestic front, rose 0.3 per cent to $1,199.65 an ounce.
Globally, gold added 0.4 per cent to $1,228.65 an ounce in Singapore.
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The current upsurge in gold prices placed the metal to a level last seen on April 10.
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.
In Zaveri Bazar, gold is being traded at Rs 26,920/10 gm
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.
Indian overtakes China in gold consumption.
Silver ready rose by Rs 350 to Rs 33,850 per kg.
Silver also spurted by Rs 1,000 to Rs 37,500 per kg.
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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 followed suit and traded higher by Rs 200 at Rs 34,200/kg.
Silver also dropped by Rs 800 to Rs 40,600 per kg on reduced offtake by industrial units and coin makers.
Gold prices recovered by Rs 85 to Rs 26,625 per 10 grams at the bullion market.
There is a reason why Brahma is paired with the Goose. And Laxmi with the Owl.
After losing Rs 730 in last six sessions after the Reserve Bank of India eased imports curbs by scrapping 80:20 scheme, gold staged a strong comeback by rising Rs 840 to close at Rs 27,040 per ten grams, a level last seen on October 30.
Traders said profit-selling by stockists at prevailing higher levels amid a weak global trend mainly pulled down both gold and silver prices.
Silver also recorded a steep fall of Rs 1,550 to Rs 34,450 per kg.
On the domestic front, gold of 99.9 and 99.5 per cent purity surged by Rs 625 each to Rs 31,750 and Rs 31,550 per ten gram, respectively. Sovereign followed suit and rose by Rs 200 to Rs 25,100 per piece of eight gram.
Silver, however, remained weak and fell by Rs 130 to Rs 39,600 per kg due to slackened demand from industrial units.
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Traders said some local buying mainly helped both gold and silver prices to recover some ground.
Silver too advanced by Rs 100 to 38,700 per kg.
