The gold prices in India slipped following cues from the global market wherein the yellow metal plunged towards 4 months low amidst strong dollar followed by rallying equities. The gold rates in India were recorded at Rs 30,950 for 10 grams of 22 karats and at Rs 31,950 for 10 grams of 24 karats.

In the global scenario, Spot gold was seen trading at $1,275.90 per ounce and U.S. gold futures were at $1,270.70 per ounce.

The U.S. housing data which showed the sale of new single-family homes to grow at one and a half year high in the U.S which in turn pushed the value of U.S. currency to grow stronger. The data eased the growing concerns surrounding slowdown of the global economy ahead of the release of U.S. GDP figures which is slated to be done on Friday.

Analysts stated that the U.S. is expected to beat analysts expectations of a 2.1 per cent growth rate with the Atlanta Federal Reserve's GDPNow model projecting growth between 2.2 per cent to 3.4 per cent.

The surge in global equities markets has cooled down gold prices which have dropped to its lowest level during the previous session, down by closely 6 per cent from its February's peak of $1,346.73 per ounce.

The strength of the dollar has made the yellow metal to lose its sheen.

In India, the lack of demand in the local market has led to the fall in its prices. In its report, PTI stated that the fall in the domestic demand and weak trend in the overseas markets led to a decline in the prices of precious metal.