International gold held near 3-week high after Cyprus rejected a proposal to tax bank account holders. This move has increased worries of a payment default by the euro zone nations, forcing investors to find safe haven in yellow metal.

International gold was seen trading at $1,614 an ounce.

Gold futures at the Multi Commodity Exchange were trading lower on reports that Indian gold funds are shrinking for the first time since June as investors are pulling money from the asset backed by precious metals.

Exchange-traded funds in gold saw outflows of Rs 8 crore ($1.5 million).

Gold futures for April contract were trading at Rs 29,770 per 10 grams lower by Rs 101 or 0.34% at 2.15 pm IST.

Delhi spot gold of 99.9% purity was seen higher at Rs 30,370 per 10 grams and gold of 99.5% was seen at Rs 30,170 per 10 grams.

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