The actively traded gold contract for February delivery on the Multi Commodity Exchange (MCX) was 0.48 percent lower at 30,705 rupees ($560) per 10 grams as of 0951 GMT.

"Jewellers are restocking due to price corrections. Most buyers are comfortable with the current price," said a Mumbai-based dealer with a state-run bank.

The rupee, which rose on Wednesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Overseas gold slipped in thin trade as uncertainty over whether the United States would be able to avoid a fiscal crisis kept investors at bay, but lower prices spurred buying from jewellers.

The March silver contract on the MCX was down 0.36 percent at 57,520 rupees per kg.