Tracking global trends, gold prices fell for the third day today, triggering hopes of renewed buying, particularly in retail and jewellery markets, during the ongoing festival season.
Gold fell by Rs 100 to Rs 31,400 per 10 grams in the Delhi bullion market. The metal has lost Rs 225 in the last two sessions.
In Mumbai, the rate was Rs 30,775, down by Rs 125. In Chennai, it was Rs 31,055 unchanged from its last closing price.
Traders said global prices declined tracking global cues. The metal fell by one per cent to six week low of USD 1,712.02 an ounce in London, amid dollar gaining strength.
Retail and jewellery purchase usually peak in the festive season in India, the largest importer of gold.
Traders said there has been apprehensions that current high prices may deter buyers this year. Gold last month had broken all previous records to set an all-time high of Rs 31,850 per 10 grams.
They decline in prices just weeks ahead of peak festival season (Dhanteras-- considered most auspicious day for buying gold --falls on November 11), has, however, triggered hopes of retail buying getting a boost this festival season.
Meanwhile, the US Dollar Index, a measure against six major trading partners, climbed to a one-week high, further giving hopes that prices will ease in global markets.