Gold prices fell 0.9 per cent to Rs 25,447 per 10 grams at the futures trade today, on increased offloading of positions by participants taking cues from the global market.
Besides, a subdued demand in the spot market where the precious metal dipped to a 20-month low, also weighed on the prices.
At the Multi Commodity Exchange, gold for delivery in June eased by Rs 232 or 0.9 per cent to Rs 25,447 per 10 gm with a business turnover of 3,383 lots.
Likewise, the metal for delivery in far-month August shed Rs 221 or 0.85 per cent to Rs 25,886 per 10 gm in 115 lots.
In the spot market, gold prices dropped to Rs 26,350 per 10 grams, its lowest level since August 17, 2011. Prices have dropped by Rs 3,250 in the last four days.
Analysts said a weak trend in the overseas markets on speculation central banks in Europe may sell holdings to raise funds and that a US recovery would curb the demand for the metal as a protection of wealth, mainly weighed on the futures trade here.
Globally, gold fell 2.8 per cent to $1,337.86 an ounce in Singapore today.