Precious metals ended a tad down on Friday on the back of improved risk appetite following the report of smallest decline in U. S. nonfarm payrolls. Gold futures ended $1 lower and prices failed to surpass $1,000 an ounce. Silver futures closed -0.03 percent down on LME. It settled flat on MCX on Saturday.

India's gold imports in 2009 are seen between 460 to 550 tonnes, compared with 712 tonnes a year ago, with high prices and an economic slowdown hitting demand in the world's biggest market, trade members at an industry conference said on Sunday.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings stood at 1,077.63 tonnes as of Sept 4, down 0.38 tonnes or 0.04 percent from the previous business day.

Gold prices were largely unchanged after the Labor Department reported the smallest decline in U. S. nonfarm payrolls in a year in August. Still, the unemployment rate jumped to a 26-year high of 9.7 percent.

India's August to October festival season is seeing a rise in gold buying that is expected to increase with major festivals Dussera, Diwali and Dhanteras coming up in the weeks ahead, when consumers buy gold for auspicious reasons.

India's Hutti Gold Mines Co Ltd, owned by Karnataka state government, expects its gold production to touch 3.5 tonnes in three to five years from now, from the current 2.8 tonnes, a official said on Saturday.

Money managers held a net long position of 150,038 contracts in gold on Sept. 1, according to a new report from the U. S. Commodity Futures Trading Commission aimed at providing more transparency in the markets.

We expect some profit taking in precious metals after witnessing an extended rally in the last week. Absence of triggers may pull the prices slightly down. However, the downside would be limited.