Standard gold 24-carat opened Rs 30 lower at Rs 4,220 per 10 grams, after losing Rs 20 on Thursday.

Dealer Mahavir Shah said the Indian rupee's recovery against the dollar pulled gold prices down.

The Indian rupee was quoted at 42.55/58 per dollar in afternoon trade on Friday, after it sunk to an all-time low of Rs 43.70 on Thursday prompting a series of central bank action.

Gold biscuits (116.64 grams) dropped Rs 200 to Rs 49,300 per piece.

In the European market, gold was steady against previous New York close of $284.90/$285.40 per ounce.

Silver (.999) opened steady at Rs 7,790 per kg amid limited trades and subdued demand.

Silver was down Rs 100 on Thursday.

In Europe, silver was unchanged at $5.16/$5.18 per ounce.

"Sluggish demand and steady overseas arrivals may drag silver prices down later in the day," Shah said.

Sugar rallies: Sugar price rallied from the low level on reserved selling.

The market witnessed a rally of Rs 10 a quintal from the low level reached yesterday in the wake of delicensing of the industry as the trade had also anticipated total decontrol which did not materialise. M-30 rose to Rs 1440-1450 and S-30 to Rs 1420-1430 ex-octroi checkpost due to sellers turning reserved.

Ex-godown, the price ruled at Rs 1460-1525 and at Rs 1420-1470 respectively in early deals.

Pakistan sugar was on offer at Rs 1395 plus tax.

Kabuli gram spurts: Kabuli gram price exhibited a firm trend in the grains market. Elsewhere, a dull trend prevailed.

With the stocks remaining considerably low due to lack of fresh arrivals as the local market was out of parity with the overseas quotations, coupled with increased buying support the price of kabuli gram shot up. A-2 Mexican rose to Rs 3400 from the low of Rs 3050. Turkish at Rs 2900 and Iranian at Rs 2800-2900 were up by Rs 100. B-2 moved up from Rs 2500-2550 to Rs 2600-2625. C-2 were placed at Rs 1550-1600 and natural at Rs 2100-2200.

Green peas USA were on offer at Rs 1600-1650 and Canadian at Rs 1050-1085. White peas Canadian ready were placed at Rs 1121 and September/October shipments at Rs 975. Tur Myanmar 1998 and 1997 were on offer at Rs 1950 and at Rs 1850 respectively. Urad Myanmar found sellers at Rs 1175. Moong Myanmar were placed at Rs 1800-1900. Deshi new moong average ruled at Rs 1550-1600 and superior at Rs 1800-2000 in the producing centres.

Among cereals, a steady trend prevailed. Milling wheat ruled at Rs 690-700. Saurashtra Lokvan were placed at Rs 775-825, north Gujarat at Rs 741-775 and Ganganagar at Rs 775-800.

Rice SLO were traded at Rs 1100-1150. Gujarat-17 were placed at Rs 1400-1500. Permal FCI and superior were placed at Rs 875-925 and at Rs 1150-1250 respectively.

Yarn subdued: In lacklustre trading price ruled dull-to-subdued on the yarn market.

In polyester yarn, demand continued to be sluggish. Grey first quality of medium sized units 80dn rotoset were on offer at Rs 82-83 and micro rotoset at Rs 100-102 a kg. 80dn weft and warp were placed at Rs 80-82 and at Rs 90-92 respectively. 80/1000dn were placed at Rs 108-110 and 80/1400dn at Rs 112-115.

In the case of 150dn, weft were on offer at Rs 66-67, warp at Rs 78-79, single rotoset at Rs 70-71 and double rotoset at Rs 72-73.