Traders said positive global cues as the dollar eased after last week's rally and investors waited for more data on the US inflation amid expectations of rising interest rates
US gold futures for April delivery were nearly flat at $1,314.50 per ounce
Asian share markets were trying to find their footing on Wednesday as a semblance of calm returned to Wall Street
In the national capital, gold of 99.9 per cent and 99.5 per cent purity bounced back by Rs 120 each to Rs 31,240 and Rs 31,090 per 10 grams, respectively
Bullion traders said fall in demand from local jewellers and retailers at existing levels at the domestic spot market mainly pulled down gold prices
The dollar index has fallen over 10 per cent over the past quarter on a growing US economy
The gold survey also said the year 2017 had seen a good demand for the yellow metal by central banks
Tracking gold, silver ready jumped Rs 1,100 to Rs 41,000 per kg and weekly-based delivery Rs 1,190 to Rs 40,130 per kg
Sovereign, however, remained unchanged at Rs 24,800 per piece of eight grams
Bullion traders said the sentiment got a boost owing to a firming trend overseas where gold rose to the highest since September
Globally, gold rose by 0.72% to $1,322 an ounce and silver by 0.58% to $17.20 an ounce in New York yesterday
Bullion for immediate delivery advanced as much as 0.5% to $1,309.32 an ounce, the highest level since September 26
Silver maintained its upward march and added another Rs 280 to reach Rs 39,980 per kg backed by increased offtake by industrial units and coin makers
The dollar's drop to three-month lows versus a basket of currencies on Friday lifted gold to its highest since mid October at $1,303.90 an ounce
Among the precious metals, palladium also has been the best performer this year, rising more than 57% on strong demand
Gold prices have risen from a near five-month low of $1,235.92 touched earlier this month
The precious metal had gained Rs 290 in the previous three sessions
The dollar index, which tracks the greenback against a basket of six major rivals, edged down 0.1 per cent
In Tokyo, gold was sold at par to a 25-cent premium to spot this week, largely unchanged due to a quiet market ahead of the year-end holidays
In the national capital, gold of 99.9 and 99.5 per cent purity shed Rs 25 each to Rs 29,525 and Rs 29,375 per ten gram respectively