Domestic pure gold quoted on a buying basis fell 0.59 percent from the previous day to about 846,000 won per 3.75 grams, according to domestic gold price tallies, with platinum and silver also softer.

Gold usually moves with real interest rates, the value of the dollar and the scale of central bank purchases. When real rates rise, the relative appeal of an asset that pays no interest declines.

Diversification of central bank reserves is the item to watch in the recent pattern. Analysts credit sustained buying by emerging-market central banks over recent years with supporting the downside.

Physical demand carries a seasonal element. In Asia, jewellery demand has repeatedly risen around the autumn festivals, the wedding season that follows, and India's festival period.

Domestic buyers should note that both the international price and the exchange rate feed through. A falling world price coincides with a weaker won leaves the price felt at home less changed.

Buying jewellery and buying for investment differ structurally. Jewellery carries fabrication costs and retail margin, so the spread between buying and selling prices is wide, which is cited as making short-term gains difficult.