The 30-share Sensex pared some losses, ending 336.36 points or 0.82 per cent lower at 40,793.81.
Gold is trading at Rs 38,695 per 10 gram in the national capital on Friday on sharp depreciation in rupee.
Forex traders said rupee is trading in a narrow range as investors are also awaiting clarity on the US-China trade front.
Similarly, the broader NSE Nifty was quoting 38.45 points, or 0.32 per cent, down at 12,112.70.
After touching its lifetime high of 41,163.79 during the day, the 30-share Sensex rose by 109.56 points or 0.27 per cent.
Silver prices declined by Rs 91 to Rs 45,293 per kg on Thursday.
Forex traders said, the domestic unit was trading in a narrow range as investors await clarity on the US-China trade front.
After hitting its life-time high, Sensex pared some gains to trade 52.93 points higher at 41,073.54 in morning session.
Forex traders said the rupee appreciated for the second straight day on foreign inflows in primary as well as secondary equity market.
Sensex rose by 199.31 points or 0.49 per cent to end at a new life-time high of 41,020.61 as 24 of its constituents ended in green.