In global markets, gold prices declined 0.3% to $1,461.15 per ounce after better-than-expected China factory data stoked the risk appetite, hurting gold prices.
The gains in gold prices came despite a news report said that a trade agreement between the US and China has stalled because of Hong Kong legislation. Another news report said that China's top priority in any "phase one" trade deal with the US is the removal of existing tariffs on Chinese goods.
"Gold prices fell today as Asian stocks gains on better-than-expected China factory data and the US dollar strengthened, despite uncertainty over a US-China trade truce. Technically, London Bullion Market Association spot gold is expected to trade in the the range of $1450 to $1466 levels," Reliance Commodities said in a note.
Technically, in domestic markets, February gold is expected to trade in the range of ₹37,650 to ₹38,100 in the near term, Reliance Commodities said.
MCX silver March is expected to trade in the range of 44,425 to ₹45,250, it added.
The recent dip in gold prices has prompted some uptick in restocking by jewellers in India, Reuters reported. Dealers charged a premium of up to $1.5 an ounce over official domestic prices last week, said the report. However, retail demand was still sluggish.
Gold prices in India includes a 12.5% import tax and 3% GST.
The government plans to make hallmarking of gold jewellery from mid-January but a period of one year will be allowed to set up new hallmarking centres and to clear jewellers' existing stocks, Consumer Affairs Minister Ram Vilas Paswan said last week. (With Agency Inputs)