Spot gold prices hit a near three week low of $1,355 an ounce, a level not seen since the last week of August.
In India gold prices drifted lower in line with the international markets, as the falling rupee also eased prices considerably.
On the MCX gold for Oct delivery gained marginally to Rs 31,103, after having witnessed a record in late August of Rs 32,500. Silver too was trading firm on the MCX.
The next big trigger for gold would be whether the Fed announces a tapering off, of its QE3 in the US on Sept 19.
Should the Fed decide to taper, it could send gold prices lower. Check gold rates here