Gold is trading at Rs 38,789 per 10 gram in the national capital on Tuesday as stronger rupee limited the gains.
On the Multi Commodity Exchange, crude for delivery in December traded higher by Rs 18, 0.45 per cent, to Rs 4,026 per barrel.
The fresh trade war tensions along with unabated foreign fund outflows weighed heavily on the market sentiments, traders said.
Forex traders said, the domestic unit is trading in a narrow range ahead of the RBI monetary policy decision on Thursday.
Exchanges cite non-compliance with market rules.
The local unit gathered strength anticipating further easing in key rates to boost the slowing economy.
The 30-share BSE gauge closed marginally higher by 8.36 points or 0.02 per cent at 40,802.17.
Positive opening in domestic equities supported the rupee and restricted the fall.
The 30-share index was trading 81.65 points, or 0.20 per cent, higher at 40,875.46.
PMI data for manufacturing and services sectors are scheduled to come this week which may also impact trading at the bourses.