Gold futures in India, which hit their lowest level in eight months, are likely to recover from the multi-months low, helped by bargain buying.

The actively traded gold for April delivery on the Multi Commodity Exchange was 0.11 percent higher at 29,378 rupees per 10 grams, after hitting a low of 29,111 rupees last week, a level last seen in mid-July.

"Most negative factors have been priced in. Gold is finding good physical bargain hunting interest at lower levels," said Gnanasekar Thiagarajan, director with Commtrendz Research.

Gold has shed about 5 percent so far in 2013, weighed by a stronger dollar overseas amid optimism of a bounce back in U.S. economy. Gold acts as an alternative investment to the dollar.

Buying is advised on dips to 29,250 rupees, for a target of 29,850 rupees, with a stop loss of 29,100 rupees.

Silver for May delivery was 0.17 percent lower at 54,763 rupees per kg.

Buy silver on dips to 54,000, with a stop loss of 53,700, targeting 55,200, said Thiagarajan.