However, the government has said that it will not reduce the import duty, but might consider tax on unbranded jewellery.
On the Multi Commodity Exchange (MCX), Gold for April delivery was down by Rs 13 at Rs 28,189 per 10 grams at 02.30 pm IST.
Speculators are closely monitoring the rupee as the currency plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
Silver for May delivery on MCX rose by Rs 248 or 0.44% at Rs 57,019 per kgs.
US spot gold was seen trading at $1,663 a troy ounce.