Gold importers in India, the world's biggest consumer of the metal, retreated as a weaker rupee limited the downside in prices, despite weak overseas markets.
After a 50 per cent import duty hike to 6 per cent on January 21, the Reserve Bank of India last week recommended putting curbs on imports, along with launching gold-linked products to limit shipments. Wedding and festival season are currently underway in India.
The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was 0.08 per cent lower at Rs. 30,617 per 10 grams.
"Buying is there, but not in a big way as rupee has depreciated and overall costing remains in the same range. People are hoping to buy below Rs. 30,000," said a dealer with a private bullion importing bank in Mumbai.
The rupee, which traded weaker, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Overseas gold extended losses to hit its weakest in more than a month in holiday-thinned trade.
Silver for March delivery on the MCX was 0.39 per cent lower at Rs. 57,435 per kg.
