Gold prices in India fell to their lowest in nearly one month on Thursday, tracking overseas markets, but spot demand was subdued as jewellers hugged the sidelines hoping for prices to drop further.
At 0815 GMT, the benchmark October contract on the Multi Commodity Exchange (MCX) was 1.36 percent lower at Rs 30,265 per 10 grams. It hit a low of Rs 30,200 earlier in the day, a level last seen on Aug 16.
"Demand is weak. Buyers are waiting for prices to fall below Rs 30,000. They are comfortable with buying around Rs 29,500. At that level, they can start restocking for the festival season," said Daman Prakash Rathod, director with Chennai-based wholesaler MNC Bullion.
The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. It eased on Thursday.
In the overseas market, gold fell more than 1 percent to its lowest level in four weeks on Thursday, as hope grew that a US strike on Syria could be avoided and on expectations the US Federal Reserve would start to unwind its monetary stimulus soon.
The customs department issued guidelines for gold imports last week. India is the world's top consumer of the metal.
Silver for September delivery on the MCX was 1.69 percent lower at Rs 51,554 per kg.