Gold futures on the Multi Commodity Exchange were trading lower by 1.73 per cent at Rs 27,526 per 10 grams at 1.30 p.m. on Thursday.
August contract opened lower at Rs 28,000 against the previous close of Rs 28,011. It made a high of Rs 28,000 and low of Rs 27,487.
In Comex, the yellow metal for August delivery was down by $50 at $1,324 a troy ounce at 1.30 p.m.
On the Multi Commodity Exchange, gold for delivery in August contract eased by Rs 117 or 0.42 per cent to Rs 27,894 per 10 gm in a business turnover of 1,275 lots. Likewise, the metal for delivery in far-month October shed Rs 112 or 0.4 per cent to Rs 28,063 per 10 gm in 66 lots.
In the spot market, gold prices dropped by Rs 80 to Rs 28,400 per 10 gm in the national capital yesterday.
Analysts said besides subdued domestic demand, a weak trend in the overseas market as the US Federal Reserve Chairman Ben Bernanke said that it could start tapering off its massive stimulus programme later this year, mainly weighed on gold prices at the futures trade here.
They said, however, depreciating rupee which slumped to a record low of 60 against the dollar, cushioned the fall as weak rupee makes imports costlier.
Globally, the yellow metal fell 0.9 per cent to $1,339.55 an ounce, the cheapest since May 20 in Singapore today.