Gold futures prices fell 1.06 per cent to Rs 31,291 per 10 grams today as speculators offloaded their positions in tandem with a weak global trend amid strengthening rupee.
On the Multi Commodity Exchange, gold prices for delivery in far-month December fell Rs 334 or 1.06 per cent to Rs 31,291 per 10 grams in a business turnover of 92 lots. Similarly, the yellow metal prices for delivery in October declined Rs 327 or 1.04 per cent to Rs 31,213 per ten grams in 1,269 lots.
Market analysts said the fall in gold futures was mostly attributed to a weak trend overseas on speculation that the US Federal Reserve will start to pare stimulus from next week and as a bid to avert military action in Syria eroded the safe haven demand.
Besides, strengthening of rupee, which makes import of dollar-quoted precious metal cheaper, also helped the gold to trade lower, they said.
Meanwhile, gold prices fell 0.8 per cent to $1,375.81 an ounce in Singapore.