Gold price is declining due to the strengthening of dollar in the wake of the US Federal Reserve's move to control rate on inflation concerns.
Gold is generally considered as an alternative investment against dollar among currency dealers.
Following the US Federal Reserve's decision to control the interest rates, dollar gained against the Euro and cut losses against Yen this week.
The dollar's gains against major currencies have resulted in the greenback gaining against the domestic currency as well.
The Rupee closed weaker against the dollar by 37 paise from Wednesday and the trend continues.
Leading traders said even if gold price falls, a weaker rupee will reduce the impact to that extent in India.
Noted bullion analyst Bhargava Vaidya of BN Vaidya and Associates said that since gold was not able to reach $700 levels, price is bound to come down. He predicted that gold could touch $650 per ounce levels next month.
Traders said physical buying in gold is good at the current level as the offtake is currently close to 1,000 kg a day.
Analysts expect the yellow metal to fall as long as profits taking among investors continue.