Gold prices gained up to Rs 60 at Rs 16,860 per ten grams, defying the global rates which declined after the dollar rose to a nine-month high against the euro in the overseas markets.
Standard gold and ornaments rose by Rs 60 each to Rs 16,860 and Rs 16,710 per ten grams, respectively in India's capital, Delhi.
Marketmen said there was some demand from retail buyers which helped the precious metal snap previous two days of straight losses.
On Thursday, prices fell, tracking overseas markets after the IMF announced that it would soon begin selling gold from its reserves in the open market, raising concerns that the supplies will increase.
Market observers said the US currency surged in the overseas market after Federal Reserve raised interest rates for short-term loans to banks, which rattled the stock markets across Asia. Gold also took a hit and lost 0.82 per cent at USD 1109.50. The precious metals move in opposite direction to
the dollar.
However, silver ready was steady at Rs 25,050 per kg in limited deals and its weekly-based variety added Rs 135 to Rs 24,800 per kg on speculative buying.
Silver coins too gained Rs 100 at Rs 33,100 for buying and Rs 33,200 for selling of 100 pieces.