Gold prices advanced to a record high for the second day and rose by Rs 50 at the bullion markets in New Delhi on Wednesday on the back of continued buying by jewellers. Global gold prices, on the other hand, eased as investors took profit after strong gains and ahead of Fed meeting minutes. In New Delhi, gold rates of 99.9 percent and 99.5 percent purity gained Rs 50 each to Rs 38,820 and Rs 38,650 per 10 gram, respectively, reported PTI. Sovereign gold rates advanced by Rs 200 at Rs 28,800 per eight grams. In the last two sessions, gold prices advanced by Rs 250.

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In global markets, spot gold rate was down 0.5 percent at $1,499.18 per ounce on August 21 and US gold futures slipped 0.4 percent to $1,509.70. Analysts attributed the fall to profit-booking following the precious metal's strong run, which saw it gain more than $80 this month, reported Reuters.

Silver prices also advanced by Rs 1,140 per kg on fresh offtake by industrial units and coin makers. Silver ready jumped Rs 1,140 to Rs 45,040 per kg, while weekly-based delivery gained Rs 210 to Rs 43,632 per kg, reported PTI.

Silver coins were in good demand and traded higher by Rs 2,000 to Rs 91,000 for buying and Rs 92,000 for selling of 100 coins.

PR Somasundaram, managing director of India at World Gold Council, told CNBC-TV18 that gold prices in India advanced around 20 percent but demand is still a concern. “We are dealing with higher import duty, erratic monsoon, slowing economic growth and then very volatile and all-time high gold prices and the demand really seems to be taking a backseat amongst all of this," Somasundaram said on Wednesday.

"Globally, gold prices may keep the steady trade ahead of Jackson Hole meeting where US Federal Reserve chairman Jerome Powell's speech will be crucial to anticipate risk pertaining to the markets," said HDFC Securities Senior Analyst (Commodities) Tapan Patel.

"Gold is declining below $1,500, confirming the consolidation phase that has taken place in the last few days," ActivTrades analyst Carlo Alberto De Casa said in a note.