Gold prices declined by 0.58% 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%, 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%, to Rs 27,943 per 10 grams, with a trading volume of 254 lots.
In Asian trade, gold lost as much as 0.8% 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.