Indian gold futures are likely to edge lower, continuing its fall for a fifth week in a row, weighed by expectations of a firm rupee amid steady global markets.
The rupee, which hit its highest level in more than a week, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
"Indian market will remain under pressure as rupee has started strengthening," said Pranav Mer, senior analyst with Mangal Keshav Commodities, adding gold may trade in a range of Rs 28,900-Rs 29,400.
On Monday, gold for August delivery was 0.04 percent lower at Rs 29,255 per 10 grams. The contract lost 2.9 percent in the previous four weeks.
Selling is advised at Rs 29,400-29,500 , for a target of Rs 29,100, said an analyst with Karvy Comtrade in Hyderabad.
Some investors also stayed on the sidelines ahead of a presentation by the U.S. Federal Reserve later in the week, which could give clues on further round of quantitative easing in the United States.
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A move by the Fed to launch a third round of quantitative easing (QE3) would weigh on the dollar and support bullion, but the U.S. central bank is not expected to do so anytime soon. The Fed Chairman Ben Bernanke will present his semi-annual monetary policy report on Tuesday and Wednesday.
Silver could also fall in tandem with the yellow metal.
Silver for September delivery on the MCX was 0.35 percent lower at Rs 52,583 per kg.
"We are on selling side (in silver)," said an analyst from Karvy, adding selling is advised at Rs 53,200, targeting Rs 52,100/51,200 , with the stop loss of Rs 54,500.