Gold futures on the Multi Commodity Exchange had closed higher at Rs 30,803 per 10 grams on Thursday against the previous close of Rs 30,317.
In Comex, gold for December delivery was trading lower by $5 at $1,668 a troy ounce at 9.35 am.
The Reserve Bank of India has indicated that the Government may exceed its budgeted deficit target due to higher spending on fuel subsidy and a weak economic growth outlook which may lead to lower tax collections.
This news will have an impact on rupee movement against dollar and influence gold prices.
Gold is expected to move up in the morning session, but will take cues from rupee during the latter half.