Gold prices fell by Rs 218 to Rs 27,918 per 10 gm in futures trade today as speculators indulged in trimming their positions after the precious metal dropped to a four-and-a-half month low in the global markets.
In addition, a weakening rupee which dipped to record low of 54.46 against the dollar also weighed on the gold futures here. A weak rupee makes dollar-denominated commodities more expensive to import.
At the MCX, gold for delivery in June fell by Rs 218, or 0.74%, to Rs 27,918 per 10 gm, with a business turnover of 4,238 lots.
The August contract declined by Rs 137, or 0.69%, to Rs 28,315 per 10 gm, in a turnover of 478 lots.
Market analysts said offloading of positions by speculators largely in tandem with a weak trend in global markets pulled the precious metal down.
International markets slumped after Greek leaders failed to form a government, increasing speculation that the country may quit the eurozone. This drove the Dollar Index to a record advance led to a fall in gold prices at futures trade.
Meanwhile, gold fell by 0.7% to $1,533 an ounce in Singapore, the lowest level since December 29.