Gold futures down 0.58% on global cues
Analysts said reports of a weakening trend in precious metals amid concerns that Europe's debt crisis may escalate pulled down the euro against the dollar, dampening demand for gold futures as a safe haven investment.
Gold prices declined by 0.58 per cent to Rs 27,600 per 10 grams in futures trade on Monday in tandem with a weakening trend overseas as the US dollar strengthened, reducing demand for precious metals.
At the Multi Commodity exchange, gold for delivery in February eased by Rs 162, or 0.58 per cent, to Rs 27,600 per 10 grams, with a business turnover of 3,747 lots.
In a similar fashion, the metal for delivery in April lost Rs 164, or 0.58 per cent, to Rs 27,943 per 10 grams, with a trading volume of 254 lots.
In Asian trade, gold lost as much as 0.8 per cent to $1,605.30 an ounce in Singapore in early trade on Monday.
Analysts said reports of a weakening trend in precious metals amid concerns that Europe's debt crisis may escalate pulled down the euro against the dollar, dampening demand for gold futures as a safe haven investment.