Investors book profits amid fears that a large sell-off in equities will have a spillover effect on a safe-haven asset like bullion
"Spot gold of 24 karat in Delhi was trading up by Rs 75 with rupee depreciation," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
Adjusting for a large institutional order in the year-ago quarter, retail growth has been much higher than expectations at 15%
Silver also witnessed increased buying as it surged Rs 1,105 to Rs 49,430 per kg from Rs 48,325 per kg in the previous trade
Silver prices also gained by Rs 21 to Rs 47,781 per kg, compared to Rs 47,760 per kg in the previous trade
Gold-silver ratio indicates more upsurge possible for the white metal
Silver also zoomed Rs 943 to Rs 47,146 per kg compared to the previous close of Rs 46,203 per kg
Silver prices declined by Rs 65 to Rs 45,485 per kg against the previous close of Rs 45,550, HDFC Securities said
Analysts said widening of positions by traders in sync with a firm trend overseas for precious metals mainly influenced silver prices
In the international market, gold was trading at $ 1,466 an ounce and Silver at $ 16.86 per ounce in New York
The rupee depreciated 30 paise to 71.77 against the dollar in early trade on Wednesday amid rising concerns over the US-China trade deal and political unrest in Hong Kong
Tracking the rise in gold, silver prices also moved up by Rs 230 to Rs 46,510 per kg from Rs 46,280 per kg on Wednesday.
Silver also declined by Rs 29 to Rs 47,583 per kg from Rs 47,612 per kg
In the previous trade, Gold had closed at Rs 38,870 per 10 grams
Gold-silver ratio can give direction whether the latter will rally or not
In global markets, both precious metals continued downward spiral
Demand is drying up at these price levels as consumers wait for correction before they buy
Traders attributed the gain in gold to increase in the domestic spot market demand
The metal was a laggard for some time but it seems to have bounced back, with short positions in international exchanges getting covered
Globally, gold and silver were trading a shade higher at $1,517.30 and $16.96 an ounce