(REUTERS) -- Gold traders in India, the world's biggest buyer, stayed on the sidelines as a rebound in the rupee raised hopes of prices dropping further after the yellow metal extended losses for the third day in a row, analysts said.

Gold for April delivery on the Multi Commodity Exchange (MCX) was trading 0.23 percent lower at 28,194 rupees per 10 grams.

The contract had shed 0.4 percent in the previous two sessions.

There is no buying at this rates... Last demand was seen below 28,000 rupees, said Haresh Acharya, head of bullion desk, Parker Bullion in Ahmedabad.

The rupee, which rebounded after a weaker opening, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Silver prices were steady.

Silver for March delivery on the MCX was trading 0.10 percent higher at 56,931 rupees per kg.