On the Multi Commodity Exchange, gold for August contract closed at Rs 29,870 per 10 grams. It may trade in a range between Rs 29,750 and Rs 30,050 per 10 gram.
In Mumbai, spot gold was down by more than Rs 70 at Rs 2,867 a gram at 9 am.
US spot gold price was down by $5 at $1,563 a troy ounce at 9 am.
Most Asian markets were down after reports signalled a slowdown in US economic recovery. Home sales in the US fell more than forecast and jobless claims exceeded market estimates.
Moody’s has cut the ratings of 15 world’s biggest lenders including Credit Suisse AG, Morgan Stanley, UBS AG. Oil traded near a nine-month low.