Measures under discussion will curb imports by private trading firms.
Overall demand down 2% while supply dipped 7% as Indian demand rose 60% and China\'s fell 39%.
Gold retains its lure as a safe-haven asset compared to silver.
Technically, gold will not get out of threat of $1,000 unless the $1,433 resistance barrier is broken.
Bullion has gained over 3% this month after shedding 6% in September.
US gold futures for December delivery ends $2.20 lower at $1,239.00 an ounce.
Gold prices end 2.4% higher for the week ending 11 October.
The rise in the metals marked their move off eight-nine month lows in all but silver.
China to resume physical buying of gold on 8 October.
US dollar rally backed by recovering US economy weighing on precious metals.
China\'s \'Golden Week\' holiday and US non-farm payrolls data to influence gold prices next week.
Prospects for higher US rates after the recent Fed statement continues to weigh on the dollar-denominated assets.
Gold, silver, platinum and palladium decline following dollar rally.
Stronger dollar and tighter US monetary policy could dent gold\'s safe-haven status.
Traders await US Federal Reserve chair Janet Yellen\'s policy move.
Goldman Sachs has forecast that prices will drop to $1,050 in 12 months as US economy improves.
Stronger US dollar will dent the yellow metal\'s safe-haven status.
Abitibi Royalties takes Yamana Gold and Agnico Eagle Mines to court.
The yellow metal plunged to a new 10-week low as marketeers await key US jobs data and ECB rate decision.
ECB meeting and US nonfarm payrolls data to influence gold prices next week.