Gold prices hit an all-time high of Rs 115,000 per tola in the domestic market on Wednesday.
The per tola price of yellow metal rose by Rs1500 to Rs115,000 per tola while the 10-gram gold rate increased by Rs1,286 to trade at Rs98,594.
The increase in domestic gold prices was attributed to $31 per ounce rise in world gold rate to $1,856.
Spot gold was down 0.2% at $1,867.36 per ounce by 0333 GMT, after hitting its highest since September 2011 at $1,876.16 in early Asian trade.
U.S. gold futures rose 0.1% to $1,867.
Elsewhere, silver retreated sharply, falling 2.2% to $22.53 per ounce, having rallied to a near seven-year high, helped by hopes for a revival in industrial activity.
Platinum dropped 1.2% to $910.14, while palladium slipped 0.5% to $2,136.17.
Earlier on July 2, gold price had hit an all-time high of Rs105,200 per tola in the domestic market.