Traders said sluggish demand due to ongoing 'Sharads', an inauspicious fortnight in Hindu mythology to make fresh purchases, mainly kept the precious metals lower.
The Commerce and Industry Ministry is pitching for easing of the gold import restrictions to boost gems and jewellery exports
India's major import items from UAE include petroleum and petroleum products, precious metals, stones, gems, jewellery, minerals and chemicals
As global markets near all-time highs driven by liquidity, Marc Faber suggests most asset prices worldwide are inflated.
40-50 tonnes of gold may have been smuggled into India in July-September; industry seeks duty cut
The precious metal spurted to regain Rs 27,000 level after June 24 as it rose in global markets following Federal Reserve Chairman Ben S Bernanke backed sustained stimulus for the for some time.
As the country moves towards creating a spot gold exchange, markets regulator Sebi's whole time member G Mahalingam on Wednesday suggested routing all the imports of the precious metal through the exchange ecosystem in the future. Such a "funnelling" would ensure that gold monetisation takes place right at the source as the metal enters the country, he said while addressing a conference organised by industry lobby Ficci. However, he also noted that the issue has not been dealt with in the papers floated by Sebi.
Indians are no more rushing to buy bullion after this week's sharp sell-off
The precious metal is understood to have arrived in large quantities through official channels, including direct import by export-oriented units, in the last week of March.
SWF is a state-owned investment fund comprising of financial assets such as stocks, bonds, property, precious metals and other financial instruments.
Sri Lanka, Thailand and Singapore are the latest hotspots as authorities crack down on travellers from Dubai.
The import tariff value -- base price at which customs duty is determined to prevent under-invoicing -- is revised on a fortnightly basis.
Lower imports has helped narrow trade deficit to $9.92 billion in January from $18.7 billion.
The enforcement agencies during the first nine months of 2013-14 have seized 1,074.41 kg of gold
Given prices of the latter are at an all-time high, it makes sense to opt for cheaper precious metals.
Traders said a weakening trend in the precious metals overseas after the Federal Reserve pressed on with cuts to stimulus amid signs of a recovery in the US, reducing demand for the safe haven, mainly put pressure on the gold prices in New Delhi.
The government took steps to curb imports of gold after concerns about the country's current account deficit.
Gold imports in 2011-12 amounted to $56.5 billion and in the current financial year, till December, they are estimated at $38 billion.
Traders said reduced offtake by stockists at prevailing higher levels and sluggish demand mainly kept pressure on both gold and silver prices.
Sentiment remained bearish as gold fell in global markets after the US and Russia agreed on a plan to destroy Syria's chemical weapons, diminishing demand for the precious metal, traders said.
Global appetite for gold fell 21 per cent in the third quarter as outflows from physical bullion funds and the drop in buying from India offset firmer jewellery, coin and bar sales, a quarterly report from the WGC showed on Thursday.
Gold exchange-traded funds (ETFs) have further lost favour among Indian investors.
Traders said sustained buying by stockists and retailers for the ongoing marriage season mainly led an upward trend in precious metals.
India imports a staggering 1,000 tonnes of gold every year, draining out foreign exchange and putting pressure on the fiscal deficit.
Higher silver demand in the world's biggest buyer may help support prices, which have fallen almost 30 per cent this year on the international market.
Recent months been worse for investors in gold mining companies.
Investors looking to make a quick buck from the yellow metal should hold on for now.
NSEL, has up to Rs 500 crore (Rs 5 billion) daily turnover in e-golds.
Gold prices are likely to rise by up to Rs 700 per 10 gram in the short term with tapered demand following the government decision to hike import duty on the precious metal, according to jewellers and analysts.
The demand for the precious metal stood at 202.1 tonnes in the same quarter last year.
Traders said sustained selling by stockists on the back of sluggish demand mainly kept pressure on precious metals.
The World Gold Council (WGC) said the recent fall in gold prices was driven by speculative traders in the futures markets.
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 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.
The government on Friday slashed the import tariff value on gold and silver to $405 per ten gram and $642 per kg, respectively, in line with global trends.
However, the tariff value for silver has been lowered to $920 per kg, according to a notification released by the Central Board of Excise and Customs on Tuesday.
D Subbarao reiterated concerns over rising gold imports and its pressure on current account deficit.
The yellow metal fell by Rs 115 to Rs 26,715 and silver lost Rs 400 to Rs 40,350 per kg.
Gold in Singapore, which normally determines price trend on the domestic front, lost 0.90 per cent to $1,132.16 an ounce, the lowest since April 2010 and silver dropped by 2.3 per cent to $15.06 an ounce, the lowest since February 2010.
S Saraswathi introduces readers to the beautiful Sri Venugopalaswamy Temple in Gopalapuram, Chennai.
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