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Gold futures prices fell 0.54 per cent to Rs 28,716 per 10 grams today, tracking a weak trend overseas as a stronger dollar reduced the appeal of the precious metal as an investment option.
In addition, subdued demand in the domestic spot market at prevailing levels put pressure on gold prices at the futures trade here.
At the Multi Commodity Exchange, gold for delivery in February fell Rs 155 or 0.54 per cent to Rs 28,716 per 10 grams with an open interest for 3,175 lots. Similarly, the metal for delivery in far-month April shed Rs 156 or 0.53 per cent to Rs 29,019 per 10 grams with a trading volume of 85 lots.
Market analysts said offloading of positions by speculators influenced by weak cues from overseas markets — with the dollar continuing its rally against the euro amid the persisting debt crisis in the euro zone — eroded demand for the precious metal as an alternative investment avenue.
However, weakness in the rupee, which slumped to a fresh record low of Rs 53.75 per dollar in early trade today, capped the losses.
Meanwhile, gold fell 2.07 per cent to an almost seven-week low of $1,630.90 an ounce in Singapore.
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