The Central government said on Wednesday that the tariff value on gold will be $347 per 10 grams and $448 dollars on silver per kg.

This constitutes an increase from $344 on gold and a reduction from $461 on silver announced on 30 November, 2015.

The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. It is normally revised on a fortnightly basis.

Gold was trading at Rs 25,270 on 16 December, down from Rs 25,304 on 15 December.

Meanwhile, India's gold imports plunged 36.48% to $3.53 billion in November from $5.57 billion in the corresponding month last year, due to falling gold prices.

The import value of silver also declined last month, according to statistics released by the union commerce ministry.

Silver imports dropped 55% to $285 million in November 2015, from $ 643.71 million in November 2014, reports PTI.

Both the metals saw a significant decline in prices in November, reflecting in the import figures.

India is the second largest consumer of gold after China. The demand for gold jewellery spurted by 78.81% to 211.1 tonnes in the quarter ended September 2015, from 118 tonnes in the April-June quarter 2015, according to World Gold Council.

Gold prices are expected to remain range-bound in view of dealers and jewellers anticipating a decline in the backdrop of a likely interest rate hike by the US Federal Reserve at its meeting on 16 December. A higher interest rate would strengthen the dollar and consequently a fall in demand for the precious metal, pulling prices down.

This has put buyers in a wait-and-watch mode.

"People have funds in banks. They need gold, but they want to see how market reacts to the Fed's meeting," said Harshad Ajmera, proprietor of JJ Gold House, a wholesaler in the eastern Indian city of Kolkata, reported Reuters.

Besides, the Chennai floods that caused havoc in India's fourth largest city and the surrounding districts, forcing dealers to offer discounts to buyers to offload inventory.