Marketmen said firming global trend as investors awaited next week's meeting of Federal Reserve for clues on the timing of a US rate increase amid speculation that rises may be likely only in 2016, mainly influenced gold prices.

Gold prices eased owing to slackened demand from jewellers even as the metal strengthened overseas.

Traders said weak global cues amid the US Fed indicating that it may go on to raise interest rate this year eroded demand for the precious metals.

Silver also retook the Rs 36,000-level by surging Rs 1,100 to Rs 36,500 per kg on increased offtake by industrial units and coin makers.

Bullion traders said a firming global trend as investors await release of the US Federal Reserve minutes, which may give further clues on the timing of an interest rate increase and sustained buying by jewellers to meet rising demand mainly kept gold prices higher.

Bullion traders said besides persistent buying by jewellers to meet seasonal demand, a firming global trend after China increased its bullion reserves and billionaire Stan Druckenmiller bought the metal, mainly aided the sentiments.

Tracking gold, silver also extended its rally for the eighth day and gained another Rs 30 at Rs 36,130 per kg.

Barring bullion, there was increase in the turnover in agriculture, metals and energy commodities in the April-July period of 2015-16 fiscal, the data maintained by the commodities markets regulator FMC showed.

Besides, pickup in demand at prevailing levels by jewellers and retailers, supported the upside. Silver also moved up by Rs 100 to Rs 34,400 per kg on pickup in demand from industrial units and coin makers.

In the national capital, gold of 99.9 and 99.5 per cent purity was up by Rs 10 each to Rs 25,100 and Rs 24,950 per ten grams, respectively.

The focus today is largely expected to hover around the Power Finance Corporation (PFC) stock as the govt will sell 5 per cent stake in the state firm in a stock market transaction.

As the gold price dropped on Monday to $1,088.05 an ounce, its lowest since March 2010, Indian jewellers sent text messages to clients encouraging them to buy gold and offering to cut by half the cost of making it into jewellery.

Traders said increased buying by jewellers mainly led to the recovery in the precious metals prices. Silver also rebounded by Rs 140 to Rs 37,050 per kg on increased offtake by industrial units.

Traders said apart from increased buying by jewellers, a firming global trend, mainly kept gold prices higher.

Traders said besides a firming trend overseas, pick up in buying by jewellers to meet wedding season demand mainly led to the rise in gold prices.

Marketmen said increased buying by jewellers to meet ongoing wedding season demand, mainly kept prices of the precious metals higher.

Increased buying by jewellers to meet wedding season demand supported the upside in the precious metals, the bullion traders said.

Silver climbed by Rs 850 to Rs 37,750 per kg on increased offtake by industrial units and coin makers.

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On the other hand, silver continued to witness selling owing to lacklustre demand from consuming industries.