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 1345 IST, the benchmark October contract on the Multi Commodity Exchange ( MCX ) was 1.36 percent lower at 30,265 rupees per 10 grams. It hit a low of 30,200 rupees earlier in the day, a level last seen on August 16.
"Demand is weak. Buyers are waiting for prices to fall below 30,000 rupees. They are comfortable with buying around 29,500 rupees. 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 U.S strike on Syria could be avoided and on expectations the U.S. 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 51,554 rupees per kg.