Gold prices on Wednesday declined Rs 252 to Rs 49,506 per 10 gram in the national capital, according to HDFC Securities.
In the previous trade, the precious metal had closed at Rs 49,758 per 10 gram.
Silver also dipped Rs 933 to Rs 66,493 per kg, from Rs 67,426 per kg in the previous trade.
In the international market, gold was quoting with gains at USD 1,868 per ounce and silver was flat at USD 25.53 per ounce.
Navneet Damani, vice-president (commodities research) of Motilal Oswal Financial Services, said, "Gold prices edged higher as grim US consumer and housing data bolstered hopes for further stimulus to support an economic recovery."
He, however, added that a new coronavirus strain in the UK has caused several countries around the world to shut their borders to Britain, and drug makers are scrambling to test their COVID-19 vaccines against it. "This has given further support to the metal prices."