Standard gold (99.5 per cent purity) climbed by Rs 170 to end at Rs 30,445 per 10 grams from Wednesday's closing level of Rs 30,275.
The gold price rose to its highest level in more than a year on Thursday as investors seek a safe haven after the U.S. dollar dipped to a three-year low against a basket of six major currencies.
That sent gold tumbling to a session low of $1342.70 per ounce. A weaker dollar makes gold and other commodities denominated in the US currency cheaper for overseas buyers.More news: Smith, The Fall lead singer, dead at 60
"The second Trump's comments came out, we saw weakness in the euro and strength in the dollar that bled over into other markets", said Phillip Streible, senior commodities strategist at RJO Futures in Chicago.
Gold started the year on a good note.
Gold for February delivery swung between small gains and losses and closed up 0.5%, at $1,362.40 a troy ounce, on the Comex division of the New York Mercantile Exchange.More news: Next MISSION IMPOSSIBLE Title Announced, Prepare For The FALLOUT
"After everybody heard the purveyors of finance, their views on the dollar and global GDP, there was an intraday reversal,"said Michael Matousek, head trader at US Global Investors in San Antonio".
Gold and silver prices went higher on Thursday after demand for the precious metals picked up in the wake of the reduced clout of the dollar.
"The explosive move we have seen nearly continuously since December 12 is really quite incredible".More news: S&P, Nasdaq lifted by strong earnings from Netflix