Gold prices declined by 0.58 per cent to Rs 27,600 per 10 grams at the futures trade today in tandem with a weakening trend overseas as the US dollar strengthened, reducing the 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 the Asian trade, gold lost as much as 0.8 per cent to $1,605.30 an ounce in Singapore in early session today.

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 the demand for gold futures as a safe haven investment.