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The June delivery contract was trading at Rs 28,200 per 10 grams lower by Rs 97.
Gold prices fell after hopes were raised of a positive outlook on the US economy, which led investors to bet on risky assets like equities and moving away from gold. In India, gold shops remained closed for the fourth day in a row and extended the bandh for another two days on hike in excise and custom duties, imposed in the Union Budget 2012-2013. Spot gold on MCX was not trading on account of the bandh.
However, Silver was exempted from any form of tax in the budget. Silver for May delivery on MCX was trading at Rs 56,980 per kg, down Rs 525.
Overseas spot gold price stood at US $1,652 a troy ounce.
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