On MCX, July silver futures was down 0.21 per cent to Rs 50,505 per kg. Gold prices had hit a record high of Rs 48,000 per 10 gram before it started to retract.
The gold price remains weak due to the slowdown in demand and reopening of major economies hinting at the revival. However, the gold jewellery prices vary for different states as a result of excise duty, state taxes, and making charge. Gold is typically seen as a hedge against inflation and currency debasement.
The bullion price rise was supported amid the government and central banks around the world unveiling several stimulus measures.
Meanwhile, global gold prices retreated on hopes of recovery. Spot gold was down 0.1 per cent at $1,738.12 per ounce. Among other precious metals, platinum was up 0.3 per cent to $850.19, while silver slipped 0.5 per cent to $18.17.
However, losses in gold were parred because of China-US tensions, protests in the United States and a weaker dollar.
According to a survey factory activity in China has picked up in May after lifting of the lockdown, but the improvement was marginal. Meanwhile, the manufacturing in the US also improved slightly from its 11-year low, hinting that the worst is over for the economy battered by Covid-19.
While protests in the US have intensified over the death of George Floyd in police custody, allaying fears of the revival of Covid-19, which has already left more than 1 lakh dead in the country. The US President has talked about deploying the military if state governors refused to call out the National Guard.