Gold prices on Thursday fell from record high by plunging Rs 1,575 to Rs 32,325 per ten gram on profit-selling by stockists driven by recovery in rupee amid a weakening global trend.
Globally, gold added 0.4 per cent to $1,228.65 an ounce in Singapore.
Silver also dropped by Rs 550 to Rs 40,350 per kg.
Traders said heavy selling by stockists against fall in demand at prevailing higher levels mainly kept pressure on gold prices.
Will gold touch the psychological barrier of $720? Investment funds are bullish but cautious.
Also, the import tariff value -- the base price at which customs duty is determined to prevent under-invoicing -- in case of silver has been reduced to $644 per kg from $694 per kg earlier, a notification by the Central Board of Excise and Customs said.
Silver followed suit and traded Rs 90 higher at Rs 38,290 per kg on increased offtake by industrial units and coin makers.
The precious metal had gained Rs 1,240 in the last eight days.
Silver met with resistance and fell by Rs 200 to Rs 36,000 per kg.
A dedicated physical gold exchange could lead to standard gold pricing in India.
Banks cannot function as traders of commodities, including gold, RBI chief general manager (communication) Mumbai Alpana Killawala told PTI over phone when asked about the reason behind the policy.
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 sentiments turned better after gold recovered from an eight-month low in global markets on speculation that reduced prices may spur purchases before the Federal Reserve begins a two-day policy meeting.
Scattered low level buying by retailers helped gold prices to trade marginally higher.
The Modi government's decision to demonetise Rs 500 and Rs 1,000 banknotes will drive up interest in the bullion market
Traders said restricted buying from jewellers and retailers mainly kept precious metals at previous levels.
Silver, however, remained weak and fell by Rs 130 to Rs 39,600 per kg due to slackened demand from industrial units.
The famed Indian appetite for gold is being manifest with renewed vigour this season as a surge in festival demand and a recent fall in prices has fuelled a virtual 'gold rush' in the market.
Gold coins are selling at a Rs 100 per 10 gram premium since Guru Pushya Nakshatra, one of the most auspicious occasions for buying precious metals in western Indian states.
Traders said stockists selling on sluggish demand at prevailing higher levels mainly kept pressure on the two commodities.
Silver ready ruled flat at Rs 44,600 per kg, while weekly-based delivery shed Rs 80 to Rs 43,780 per kg on lack of speculators' buying support.
Gold importers in India, the world's largest consumer, are expected to stay out of the markets on Thursday in anticipation of volatile prices with the start of US-led military assault on Iraq, traders said.
Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.3 per cent to $1,180.78 an ounce.
Gold prices recovered by Rs 85 to Rs 26,625 per 10 grams at the bullion market.
Silver coins also tumbled by Rs 1,000 to Rs 52,000 for buying and Rs 53,000 for selling of 100 pieces.
Gold is playing a decisive role in the present economic scenario as inflation and recession have eaten the vital parts of every country's economy. Most investors prefer to invest their money in gold these days. Most traders think that this is the good time to squeeze maximum benefit from the collapsing economy. With the markets now concerned about inflation, gold has posted its credentials separately from its role as a mitigator of financial and political risk.
After falling for three straight days, gold prices recovered by Rs 50 to Rs 26,700 per ten grams at the bullion market on Friday.
Silver also eased by Rs 200 to Rs 38,200 per kg on reduced offtake by industrial units and coin makers.
Silver was also up by 1.63 per cent to $15.92 an ounce.
Tracking a weak trend overseas and low demand from domestic jewellers and retailers, gold prices plunged by Rs 200 to Rs 26,350 per ten gram in New Delhi on Monday.
Gold cracked as much as Rs 730 -- its biggest one-day fall this year -- to Rs 30,520 per 10 grammes, in sync with a weak trend overseas on growing US rate hike buzz amid a fall in demand at the spot market.
Silver coins continued to be traded at last level of Rs 48,000.
The metal has gained Rs 860 in last six trading sessions.
Silver traded higher by Rs 250 to Rs 34,400 per kg.
Silver too advanced by Rs 100 to 38,700 per kg.
The total number of unique investors directly investing in the stock market has surged to 80 million for the first time, with the latest 10 million additions taking place in just eight months, according to data shared by the National Stock Exchange (NSE), the country's largest bourse. "The 80 million unique PAN (permanent account number) investors correspond approximately to around 50 million unique households in India amounting to around 17 per cent households directly investing in the Indian stock market via NSE's extensive nationwide network of trading members," said the exchange. In 2021, the number of domestic households were pegged at 300 million.
Traders said stockists buying for the marriage season amid a firm global trend mainly led the recovery in gold prices.
Silver also fell 0.7 per cent to $15.71 an ounce.
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