Tracking a weak global trend, gold prices fell Rs 137 to Rs 31,881 per 10 grams in the futures trade today as speculators offloaded their positions.
Sentiment turned bearish after gold fell in global markets as the rally to a 29-week high and lower commodity prices prompted some investors to sell the metal.
At the Multi Commodity Exchange, gold for delivery in October month fell by Rs 137, or 0.43%, to Rs 31,881 per ten grams in a business turnover of 7956 lots.
The December contract lost Rs 134, or 0.41%, to Rs 32,201 per 10 grams in 659 lots.
Market analysts said speculators offloaded their positions amid weak global trend, which pulled down gold prices at futures trade.
Meanwhile, gold dropped 0.5% to 1,762.27 dollar an ounce in Singapore.