Gold prices fell by Rs 100 to Rs 28,300 per 10 grams at the bullion market on Tuesday.
Traders said increased buying of gold by stockists and jewellers to meet the rising festive and marriage season demand, amid firming global trend, influenced the sentiment.
Silver also recorded a sharp fall of Rs 1,000 to Rs 37,400 per kg.
Bullion traders attributed the fall in gold prices to a weakening global trend after the US added the largest number of jobs in almost three years, fuelling concerns that the Federal Reserve will move closer to raising interest rates.
While gold fell by Rs 100 to Rs 31,350 per 10 grams and silver by 455 to Rs 47,445 per kg on reduced offtake as recent upsurge advised stockists to book profits.
Silver also recovered Rs 600 to Rs 45,200 per kg on increased offtake by industrial units and coin makers.
Traders said some buying by jewellers and retailers amid a firming global trend helped prices move further.
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.
Traders said fresh selling by stockists against slackened demand at current higher levels mainly led to fall in gold prices.
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.
Traders said continued selling by stockists against slackened demand at prevailing levels mainly kept pressure on gold prices.
Silver also remained under selling pressure.
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.
Poor demand at existing higher levels further dampened the trading sentiment, traders said.
Silver also slumped by Rs 1,700 to Rs 37,200 per kg.
Gold was among the least bruised by Monday's selloff, dropping half a percent versus a 6 percent slide in Brent crude and a 2 percent decline in copper.
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.
Traders said sustained buying by stockists to meet the rising demand for the 'Navratras,' an auspicious week in Hindu mythology for making fresh purchases mainly pushed up the prices of the precious metals.
The precious metal had gained Rs 325 in the previous two sessions.
Silver also slipped below the Rs 41,000-mark by falling Rs 525 to Rs 40,975 per kg on reduced offtake by industrial units and coin makers
Silver advanced by Rs 150 to Rs 34,200 per kg on increased offtake.
Two-thirds of gold demand in India comes from rural areas where jewellery is a traditional store of wealth.
Gold demand in India, the world's largest importer, has risen in the past few days and its buying is likely to intensify this week with a fall in prices after US troops raided Baghdad on Monday, traders said.
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.
The precious metal spurted by Rs 270 at Rs 15,700 per 10 gram, a level last seen on February 18.
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.
Total holdings of the top eight gold ETFs have risen by 3.8 million ounces so far this year
Traders said sustained selling by stockists against falling demand at prevailing higher levels mainly led to decline for the second day in the precious metals.
Traders said lack of buying support from retailers and jewellers who preferred to keep their activity restricted, anticipating further fall in coming days, mainly kept gold prices unchanged.
Traders said sustained selling by stockists on the back of sluggish demand mainly kept pressure on precious metals.
Silver followed suit and traded higher by Rs 200 at Rs 34,200/kg.
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The current upsurge in gold prices placed the metal to a level last seen on April 10.
Silver followed suit and advanced by Rs 50 to Rs 33,750 per kg.
Globally, gold in London was trading 0.58 per cent lower at $1,148.20 an ounce and silver shed 0.24 per cent to $14.75 an ounce.
This Vikram Samvat year 2070, ending on Thursday, has proved the worst in 17 years in terms of return on investment in gold.
Traders said sustained buying by stockists and jewellery fabricators for the ongoing marriage season mainly led to an upward trend in gold prices.
Steps such as safeguard duty in the works to plug the route
