Gold prices on Thursday drifted lower by Rs 497 to Rs 38,685 per 10 gram in the bullion market here, tracking a weak global trend, according to HDFC Securities.
Silver also dropped by Rs 1,580 to Rs 47,235 per kilogram from Rs 48,815 per kilogram on Wednesday.
Gold prices for 24 Karat closed at Rs 39,182 per 10 gram in the previous trade here.
"Spot gold (Delhi) prices opened lower following overnight selling in spot COMEX gold. The correction in gold prices comes ahead of the start of the festive season which could lift demand," said Devarsh Vakil, Head - Advisory (PCG), HDFC Securities.
In the global market, gold prices were trading lower at USD 1,508 per ounce, while silver traded at USD 17.90 an ounce.
"International gold prices witnessed sell off after US President Donald Trump told a trade deal with China could happen sooner than expected that damped the safe haven demand," Vakil added.
Global markets rallied after Trump's comments on trade deal with China.
Meanwhile, the BSE benchmark index zoomed over 396 points on Thursday amid positive cues from global markets.