Gold and silver prices today gained in the special Muhurat session on MCX on the occasion of Diwali. Gold futures were up 0.09% to 38,302 per 10 gram while silver rose 0.47% to 46,522 per kg. For the week, gold prices ended higher amid volatile movement, tracking a similar trend in global markets. In global markets, gold prices remained at around $1,507 per ounce.

Gold sales on Friday (Dhanteras) was more than expectations at around 30 tonnes, news agency IANS reported, citing the national secretary of Indian Bullion and Jewellers Association. Over the past few years, gold sales on Dhanteras used to be around 40 tonnes but high prices have hit demand. Gold prices are still up around 22% so far this year in India.

In global markets, gold trades in a narrow range near $1500 ounce as market players position for Fed’s monetary policy next week, says Kotak Securities in a note. Mixed US economic data and ECB’s dovish stance has added to market expectations that Fed may cut interest rate again next week, it added. Lower interest rates benefit asset classes like non-interest yielding asset classes like gold. Gold has also benefited on safe haven buying amid uncertainty about Brexit.

However, weighing on price is lack of ETF buying and US-China efforts to resolve trade issues. US and Chinese officials are "close to finalising" some parts of a trade agreement after high-level telephone discussions on Friday, the US Trade Representative's office and China's Commerce Ministry said, with talks to continue.

Silver has benefited from firmness in gold price amid increased expectations that central banks may continue with loose monetary policy stance.

In Indian markets, Kotak Securities said it is seeing an improvement in demand as is evident from narrowing spreads. "The discount between domestic and international gold price has narrowed to near $17/oz," it said.

According to RBI's calendar, sovereign gold bonds will open for subscription again on December 2-6. Another three tranches will open in January 13-17, February 03-07 and March 02-06.

Two tranches of gold bonds were open for subscription earlier this month to coincide with important gold-buying days such as Diwali and Dhanteras.

Meanwhile, RBI has clarified that it hasn’t sold any gold recently nor is trading in the metal. “The fluctuation in value depicted in Weekly Statistical Supplement is due to change in frequency of revaluation from monthly to weekly basis and is based on international prices of gold and exchange rates," the RBI said in the tweet. (With Agency Inputs)