Globally, investors eye on European Central Bank meet which is held later today.
India gold futures fell on the Multi Commodity Exchange (MCX), gold futures for December 2012 contract, were trading at Rs 31,086 per 10 grams, down by 0.36% at 2.15 pm IST.
International gold price also slipped and was seen trading at US$ 1,690 an ounce. US dollar has spiked against the major currencies of the world due to ongoing fiscal cliff issue.
As per Reuters report, Goldman Sachs cuts its forecast on gold for 2013, which weighed on the yellow-metal.
Back in India, gold of 99.9 and 99.5% purity was at Rs 31,340 and Rs 31,140 per 10 grams, respectively.
The fall in prices may attract physical buyers of India, who waited long for the prices to come down.