International Spot gold prices were around $1,238.23 an ounce, after having gained substantially on Wednesday.
On the MCX gold for February delivery was trading at Rs 29,385, down Rs 209. Indian gold has been languishing and lower international prices has not translated into any gains for consumers on account of the falling rupee.
International gold prices are set to record their first fall in 12 years, as risk on appetite means investors shift their attention back to equities.
Gold prices are now expected to seek direction from the US non farm payrolls data, due later on Friday.
A strong reading for the US non farm payrolls data would once again trigger fears that the US would engage in QE3 tapering earlier then expected.