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Sentiment was also affected as dollar strengthened against euro and other major currencies making the precious metal weak.
Gold for immediate delivery was seen trading at Rs 29,334 per 10 grams marginally up by Rs 17.
At the Multi Commodity Exchange(MCX), Gold for delivery in far-month October rose to Rs 29,695 per 10 grams at 2.20 pm IST. Domestic bullion prices also dropped on subdued physical demand due to rise in the price, with gold of 99.9 and 99.5% purity was seen at Rs 29,500 and Rs 29,300 per 10 grams, respectively.
Spot gold on MCX was trading low at Rs 29,083 per 10 grams. International spot gold was seen trading at US $1,574 an ounce.
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