In addition, profit-booking by speculators also kept pressure on the gold prices at futures trade.
At the Multi Commodity Exchange, gold for delivery in December fell by Rs. 228, or 0.82 per cent, to Rs. 27,330 per 10 grams, with a business turnover of 1,235 lots.
Similarly, the metal for delivery in far-month February edged lower by Rs. 220, or 0.80 per cent, to Rs. 27,650 per 10 grams, with a trade volume of 52 lots.
Market analysts said offloading of positions by speculators, taking weak cues from Asian trade after the dollar strengthened, curbing demand for the precious metals.
They said, profit-booking at prevailing levels by speculators also put pressure on the gold prices at futures trade.
Meanwhile, gold fell by 1.3 per cent to $1,723.90 an ounce in Singapore.