On Friday, international gold prices were hovering near their 4-month lows that it hit in the previous session after US Federal Reserve muted expectations of an interest rate cut in the near future. The American dollar gained, putting the bullion on course for its weekly fall.

The decline in the international markets, where spot gold was little changed at $1,271.25 an ounce, also affected gold prices across Indian cities. 10 grams of 22 carat gold was priced at Rs 30,000 in Chennai, Rs 30,600 in Mumbai, Rs 30,650 in Delhi and Rs 30,870 in Kolkata.

On Wednesday, Fed Reserve Chairman, Jerome Powell said that inflation risks in the US that were flagged after the release of its GDP data last week, were only based on transitory factors, and that there was no obligation to re-adjust interest rates any time soon.

Silver rates also dipped by 0.1 percent in the global markets to $14.61 per ounce, which is close to its more than four-month low of $14.52 that it touched in the previous session. The metal's prices in India inched slightly up by Rs 200 a kg to Rs 40,700 as Indian rupee weakened against the US dollar.