The recent spike in the dollar, due to positive US data, also saw gold losing ground. Historically, gold and dollar share an inverse relationship with each other and the recent spike in dollar has weighed gold down.
The Indian Rupee touched 52.90 against dollar on Wednesday, which drove gold down again. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
At 2.40 pm IST, gold for June delivery on the Multi Commodity Exchange (MCX) was trading at Rs 29,161 after having reached an intraday high of Rs 29,221 per 10 grams.
Spot gold on MCX was seen up at Rs 29,241 per 10 grams and silver down at Rs 55,523 per kgs.
International gold was seen at $1,655 a troy ounce.