At 2.51 p.m., the benchmark October contract on the Multi Commodity Exchange (MCX) was 1.19 per cent lower at Rs 29,690 per 10 grams. It hit a low of 29,636 rupees earlier in the day, a level last seen on August 16.
"A few jewellers are comfortable in placing orders below 30,000 rupees. Some buyers are still on the sidelines expecting a further drop in prices," said a Mumbai-based dealer.
In the overseas market, gold reversed early gains and fell to its lowest in more than a month on Friday as U.S. futures extended losses on fears the United States would curb its stimulus soon.
The Indian rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. It eased on Friday.
India's gold imports are likely to be around $38 to $40 billion in the current fiscal year to March 31, 2014, down from last fiscal year's $53.8 billion, C. Rangarajan, economic adviser to the prime minister, said on Friday.
Silver for September delivery on the MCX was 2.36 per cent lower at 49,305 rupees per kg.