Gold for October delivery was down Rs 125 on the MCX at Rs 29, 945, while Silver for October delivery was up marginally up by Rs 42, at Rs 49,192.
In the international markets too, gold was trading flat at $1325 an ounce. International Gold prices have fallen sharply by almost 20% this year, as investors have sold the commodity and moved into equities.
As global economic recovery gathers steam, investors prefer risky assets like equities. Gold has rallied for the last 12 years in a row and analysts believe that the commodity is headed for its first yearly decline in 12 years.
Indian gold tracks international prices and moves accordingly. However, another important variable is the rupee and a falling rupee makes gold prices more expensive in India.