International gold prices which had a sharp bounce initially after the US non farm payrolls data was announced lost ground and fell on fears that the strong data would force the Fed to taper QE3.
In the international market according to a Reuters report gold futures for February delivery settled $2.90 lower at $1,229.00 an ounce, down 1.7 percent for the week.
Gold on the MCX for February was trading lower by Rs 264, mirroring a weak global trend. Gold prices are expected to drop lower in the absence of any positive trigger for the metal.
Physical demand for the precious metal has also remained subdued as investors chase equities and not gold.
In fact, gold is set to record its first drop in 12 years, as economic growth the world over is improving, which is certainly not good news for a safe haven bet like gold.