Gold prices in India, the world's biggest buyer of the metal, rose for a third session in a row, recovering from Monday's two-week low, helped by a weaker rupee, deterring importers from stocking up for festivals.
At 1:39 pm, the most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.11% higher at Rs 31,173 per 10 grams, after gaining more than 0.5% in the previous two sessions.
The rupee, which traded slightly weaker on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
"There could be a revival in demand if prices hit Rs 30,500," said Harshad Ajmera, proprietor of JJ Gold House, a wholesaler based in Kolkata.
The festival season started in India earlier this week with Navaratri and will continue till December. Weddings also take place during this period.
"The sharp price moves of late likely acted as a deterrent, as physical buyers tend to prefer jumping in when prices are stable," said Edel Tully in a note.
Silver for December delivery on the MCX was 0.01% lower at Rs 60,568 per kg.