Mumbai: Gold traders in India, the world's biggest buyer of the metal, preferred to stay on the sidelines as a seasonally slack demand period was underway, with prices extending the fall from their highest in a week.
The RBI banned imports on a consignment basis, making it difficult for jewellers to source raw material. The government also raised import duty on the yellow metal to 8 percent.
"It is difficult to sell even 5 kg per day as the marriage season is almost over," said Daman Prakash Rathod, director with Chennai-based wholesaler MNC Bullion.
The festival and marriage season will restart in August and continue till December.
Gold prices on the Multi Commodity Exchange (MCX) extended losses for a second day on Friday, easing from their highest level in a week.
The actively traded gold contract for August delivery on the MCX was 0.09 percent lower at 26,120 rupees per 10 grams. It hit a high of 26,430 rupees on Wednesday, the highest since June 26.
Silver contract for September delivery on the MCX was 1.19 percent lower at 40,485 rupees per kg.