Gold fell by ₹235 to ₹32,015 per 10 gram at the bullion market on Friday on muted demand from local jewellers amid appreciating rupee.
Silver, however, held steady at ₹37,900 per kg on scattered enquiries from industrial units and coin makers.
Traders said fall in demand from local jewellers as well as retailers largely dragged down gold prices, but a firm trend overseas, capped the fall.
The appreciating rupee, making imports cheaper, also fuelled the downtrend in the precious metal prices, they added.
The rupee strengthened by 25 paise to 71.72 against the dollar (intra-day) in the forex market on Friday.
In the national capital, gold of 99.9% and 99.5% purity dropped by ₹235 each to ₹32,015 and ₹31,865 per 10 gram, respectively. The precious metal had risen ₹350 on Thursday.
Sovereign gold, however, remained flat at ₹24,800 per piece of 8 gram.
Globally, gold rose 0.17% to USD 1,216.10 an ounce, while silver edged up 0.14% to USD 14.39 an ounce in Singapore.
On the other hand, silver ready ended steady at ₹37,900 per kg on scattered demand, while weekly-based delivery rose by ₹147 to ₹36,818 per kg on speculative buying.
Silver coins continued to be traded at previous level of ₹73,000 for buying and ₹74,000 for selling of 100 pieces.