Gold for delivery in June dropped Rs 140 or 0.48 per cent to Rs 29,160 per 10 gram in a business turnover of 971 lots at the Multi Commodity Exchange.
Similarly, the metal for delivery in far-month August was trading down Rs 135, or 0.46 per cent, to Rs 29,410 per 10 gram in 276 lots.
The fall in gold futures was mostly in step with a weak trend overseas where it had a fifth straight decline, the longest slump since November, as speculation that the Federal Reserve will raise interest rates as early as next month strengthened the dollar, denting demand for the metal as an alternative asset, analysts said.