Gold futures prices declined by 0.11% to Rs 29,125 per 10 grams today, mostly in line with a weakening trend overseas as strong dollar reduced demand for the precious metal as an alternative investment.
At the Multi Commodity exchange, gold for delivery in April eased Rs 32, or 0.11%, to Rs 29,125 per 10 grams, with a business turnover of 130 lots.
Similarly, the metal for delivery in February lost Rs 28, or 0.10%, to Rs 28,819 per 10 grams, with a trade volume of 4,315 lots.
Analysts said reports of a weakening trend in the global markets as Europe's debt crisis boosted demand for the dollar, reducing appeal for gold as an alternative investment, mainly weihged on gold futures here.
Meanwhile, gold dropped by 0.90% to trade at seven-week low of $1,650.93 an ounce in Singapore in early trade today.