Traders attributed the rise in gold prices to increased buying by stockists and retailers to meet the wedding season demand.
Gold prices surged by Rs 150 to trade at fresh three-month high of Rs 27,575.
Gold prices fell further by Rs 75 to Rs 27,025 per ten gram at bullion market in New Delhi on subdued demand even as the metal strengthened overseas.
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Silver followed suit and lost Rs 645 at Rs 42,880 per kg on reduced offtake by industrial units and coin makers.
Gold prices on Saturday rose further by Rs 40 to Rs 27,350 per ten grams at the bullion market in New Delhi on the back of rising demand from jewellers, driven by ongoing wedding season.
Gold is seen as a preferred asset for all types of investors, even central banks.
The precious metal had gained Rs 435 in the previous three sessions.
Gold in New York, which normally sets price trend on the domestic front, fell 0.46 per cent to $1,288.20 an ounce and silver by 0.84 per cent to $20.13 an ounce in yesterday's trade.
Traders said besides low demand from jewellers and retailers, a weakening global trend -- amid the US employment data and strengthening dollar reducing appeal for the precious metals -- kept pressure on gold prices.
On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 220 each to Rs 30,800 and Rs 30,600 per ten grams, respectively.
Currently, the investor and his family's net worth in listed firms stands at Rs 8,517 crore, compared to Rs 8,388 crore as of March 31, 2020.
Bullion in the Asian region gained as much as 0.5 per cent to $1,222.47 an ounce, its highest level since May 19, as the euro extended its 2.4 per cent decline against the dollar last week.
After surging to Rs 16,220 level in September, gold prices slightly eased at a time when festival and marriage season is about to pick up.
Subdued demand from jewellers in the domestic market and shifting of funds towards the surging stock markets also weighed on gold prices.
Traders said apart from fresh buying by jewellers and retailers, firm global trend amid signs of increased demand in China and India, the world's two largest consumers, influenced gold prices.
China is reportedly buying the precious metal with its gold reserves now pegged at 1,054 tonnes from 454 tonnes in 2003, which is one of the reasons for the boost in the prices.
Silver coins continued to be sought after at the last level of Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.
Silver also rebounded by Rs 450 to Rs 38,100 per kg
Traders said in the absence of buying support from jewellers and retailers on expectations that prices will come down in coming days mainly kept gold prices steady.
Traders said stockists buying for the marriage season amid a firm global trend mainly led the recovery in gold prices.
Traders said slackness in demand from retailers and jewellers at current levels mainly led to decline in gold prices.
Gold is likely to touch Rs 18,000 per 10 gram during the forthcoming festival season as the demand for the yellow metal peaks around Diwali time, according to a projection by industry body Assocham.
Traders said fresh selling by stockists against slackened demand at current higher levels mainly led to fall in gold prices.
Bullion traders said subdued demand at current levels and a weak global trend mainly pulled down both gold and silver prices.
Bullion merchants said persistent rise in gold prices is mostly due to a firming trend in global markets as concerns over European economy mounted, spurring demand for safe-haven, and increased buying by jewellers to meet wedding season demand at domestic spot markets.
Silver also recovered by Rs 515 to Rs 36,750 per kg on increased offtake by industrial units and coin makers.
Gold prices rose by Rs 190 to Rs 27,190 per 10 grams at the bullion market on Friday.
Traders said slackened demand from jewellers and appreciating rupee, which made import of precious metal cheaper, weighed on gold prices but a better trend in the global markets restricted the losses.
Gold prices recovered by Rs 100 to trade at Rs 27,200 per 10 gm at the bullion market.
Marketmen said besides low demand from jewellers and retailers at prevailing levels, a weak global trend as the dollar touched a five-year high, damping investor demand for the metal as a safe-haven, weighed on gold prices.
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The precious metal has lost Rs 100 in the past two days.
Gold in Singapore, which normally determines price trend on the domestic front, traded a shade higher at $1,310.85 an ounce and silver by 0.70 per cent to $20.56 an ounce in on Tuesday's trade.
Traders attributed the recovery in gold prices to fresh buying by jewellers to meet festive season demand and a firming global trend as investors weighed tension over Ukraine.
Bullion traders said besides increased buying by jewellers and retailers to meet festive season demand, a firming global trend amid escalating tensions over Ukraine has raised demand for a safe-haven, resulting into influence on gold prices here too.
Silver also reclaimed the Rs 34,000 per kg mark.
After demonetisation, demand jumped as many people with unaccounted money bought the yellow metal.
In 2013, the fall in international gold prices was 28 per cent.
Silver, however, remained weak and fell by Rs 130 to Rs 39,600 per kg due to slackened demand from industrial units.
Silver recovered by Rs 100 to Rs 36,950 per kg.
The government on Wednesday reduced the import tariff value on gold to $425 per 10 grams due to falling international prices.
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