Gold prices slipped on Friday as the dollar strengthened against a basket of currencies. International spot gold was down by 0.2 per cent at $1,263 an ounce and was headed for weekly gains.
On Thursday, the European Central Bank left interest rates untouched, extending the quantitative easing.
The US Federal Reserve will meet in December to discuss on policy rates. Gold investors will closely follow reports of interest rate hike and the precious metal may witness fresh selling on any positive news.
Tracking overseas market, India gold was seen trading lower. At the MCX, Gold futures, for the December 2016 contract, was trading at Rs 29,841 per 10 grams, lower by Rs 69 or 0.23% at 1.45 pm IST. The metal for delivery in February moved down by Rs 79, or 0.26% to Rs 29,947 per 10 gram.
As per reports, demand for gold has been weak till now but is expected to pick up in the upcoming festive season.