Gold dropped Rs 301 to Rs 38,870 per 10 gram in the national capital on Wednesday due to subdued global trend, according to HDFC Securities.
Silver prices also witnessed correction tumbling Rs 906 to Rs 46,509 per kg from Rs 47,415 per kg in the previous trade.
On Tuesday, gold had closed at Rs 39,171 per 10 gram.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said, "Spot gold prices for 24 karat in Delhi were trading lower by Rs 301 with overnight fall in global gold prices. The downside in gold prices was limited on the rupee depreciation."
He further added that the spot rupee was trading 25 paise weaker against the dollar during the day.
In the global market, gold prices were trading almost flat at USD 1,486 an ounce, while silver was quoting flat at USD 17.54 per ounce.
"Gold prices traded steady on Wednesday with COMEX international spot gold prices kept the steady trading range near USD 1,486 after falling more than 1 per cent on Tuesday," he added.