Gold for October delivery was trading lower at Rs 30,628, down Rs 58 over the previous days close. Silver was also trading marginally higher on the MCX.
Early this month, gold futures had rallied to record highs on a sharp drop in the rupee and also on fears that a Syrian conflict would see an acceleration in prices.
Internationally, gold prices have been dropping as fears over a military strike on Syria recede. In fact, with diplomatic solutions now in the offing, analysts believe that a military strike can be averted pushing gold prices lower.
On Wednesday gold prices dropped to a three week low and analysts believe that the trend is likely to continue in the medium term.