Spot gold was up 0.1% at $1,455.37 per ounce by 1331 GMT. US gold futures rose 0.1% to $1,454.90, with trading volumes subdued by the US Thanksgiving holiday
Rupee opened on a flat note and appreciated by 3 paise to 71.32 against the dollar in early trade on Thursday
US President Donald Trump on Tuesday said Washington was in the "final throes" of a deal that would defuse the 16-month tariff dispute with Beijing.
Smuggling of gold via Nepal borders was not only affecting India but also Nepalese jewellers
Global equities edged off their highest in almost two years, but kept record levels in sight
World shares staged a cautious rally, while the safe-haven Japanese yen fell to a one-week low against the US dollar.
"The ultimate threat of a full escalation into a trade war, with bans and boycotts, is off the radar screen at least for the moment," Julius Baer analyst Carsten Menke said
The precious metal had closed at Rs 38,770 per 10 gram on Saturday
Gold demand was lacklustre in India as well, with dealers offering a discount of up to $3 an ounce over official domestic prices this week, compared to a premium of $1.5 an ounce last week
Globally, gold prices traded firm on Thursday amid the US-China political spat and trade uncertainities
Gold gains amid concerns over US-China trade deal, Hong Kong tensions
The prices were ruling at around Rs 39,000 per 10 gram on this Dhanteras, as against Rs 32,690 per 10 gram on the same day in 2018.
In the international market, gold was trading at $ 1,466 an ounce and Silver at $ 16.86 per ounce in New York
The dollar was stable after a rise in US consumer prices was greater than expected
The rupee depreciated 30 paise to 71.77 against the dollar in early trade on Wednesday amid rising concerns over the US-China trade deal and political unrest in Hong Kong
The lack of a coherent policy and the unwillingness of Indian jewellers to reform are tarnishing the industry
Gold slumped 3.6% last week for its biggest weekly decline in three years on upbeat equities and optimism surrounding the U.S.-China trade deal.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said spot gold prices for 24 Karat in Delhi were trading up by Rs 118 with recovery in global gold prices and sharp rupee depreciation.
In tandem with a weak trend in gold, silver prices also tumbled Rs 956 to Rs 45,498 per kg from Rs 46,454 per kg in the previous trade
Tracking the rise in gold, silver prices also moved up by Rs 230 to Rs 46,510 per kg from Rs 46,280 per kg on Wednesday.