Gold prices dipped below the psychological level of Rs 27,000 by falling Rs 335 to Rs 26,685 per ten grams at the futures trade today as speculators offloaded their positions in tandem with a weak global trend.
Sluggish demand at the spot market due to off-marriage and festival season further influenced the gold prices.
On the Multi Commodity Exchange, gold for delivery in August month fell Rs 335 or 1.24 per cent to Rs 26,685 per ten grams in a business turnover of 13,953 lots.
Similarly, the metal for delivery in October declined by Rs 325 or 1.2 per cent to Rs 26,837 per ten grams in 434 lots.
Market analysts said speculators offloaded their positions in tandem with a weak global trend on the prospect that reduced monetary stimulus from the US Federal Reserve may spur a stronger dollar and erode the demand for a store of value.
Meanwhile, the yellow metal fell 1.4 per cent to $1,278.94 dollar an ounce in Singapore.