Indian gold futures extended their fall for the straight third session on Friday to hit a one-month low, triggering some bargain buying from physical traders at the end of the wedding season.
The most-active gold for June delivery on the Multi Commodity Exchange (MCX) was 0.49% lower at Rs 28,308 per 10 grams, after hitting Rs 28,281 -- its lowest since April 9.
"Slowly deals are taking place as market is in the falling mode," said a dealer with a private bank in Mumbai, which imports bullion, adding "traders will try to catch the bottom."
The wedding season will end by the end of the month, while festival season will restart in August.
"People will not be willing to maintain huge inventory in a falling market and only resort to need-based buying," said the dealer.
Overseas gold fell 1.3% to a four-month low as waning appetite for risk hurt the euro and other assets like stocks and crude oil.
The rupee, which traded weaker on Friday, kept the downside in prices limited. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Silver also extended losses tracking gold. Silver for July delivery was 1.50% lower at Rs 53,747 per kg.