In the bullion market, gold prices for 24 Karat rose to Rs 38,860 per 10 gram from Saturday's closing price of Rs 38,400.
Silver prices also witnessed a gain of Rs 172 to Rs 48,400 per kilogram. On Thursday, it closed at Rs 48,228 per kilogram.
Gold is trading at Rs 38,775 per 10 gram at the bullion market here on a stronger rupee against the dollar.
Tracking weakness in gold, silver prices also tumbled Rs 1,150 to Rs 48,590 per kilogram at the bullion market here.
In tandem with gold prices, silver also dropped by Rs 1,273 to Rs 49,187 per kilogram.
In Delhi, the price of gold for 24 Karat (99.9 per cent purity) during the day rose to Rs 39,271 per 10 gram.
In the international market, gold prices ruled at USD 1,530 an ounce in New York while silver was quoted at USD 18.50 an ounce.
Traders said subdued demand from local jewellers led to the fall in gold prices.
Gold is trading at Rs 39,720 per 10 gram in the national capital, as positive developments in US-China trade talks.
Record-breaking run for the second day, gold spurted by Rs 250 to a fresh life-time high Rs 40,220 per 10 grams.