Amid a weak trend in the global market and subdued demand at domestic spot markets, gold futures dipped below Rs 31,000 level with prices falling by 1.86 per cent to Rs 30,585 per ten grams as speculators indulged in reducing positions.
At the Multi Commodity Exchange, gold for delivery in October month fell sharply by Rs 580, or 1.86 per cent, to Rs 30,585 per ten grams in business turnover of 11,961 lots.
On the similar lines, the yellow metal for delivery in far-month December contracts fell Rs 461, or 1.49 per cent, to Rs 30,520 per ten grams in 1,515 lots.
In the national capital, gold spot delivery remained weak and prices fell further by Rs 235 lower at Rs 31,225 per ten gram due to slackness in demand at prevailing levels.
Market analysts said the fall in gold futures was mostly attributed to a weakening trend in the global market as investors awaited minutes from the US central bank's July policy meeting for clues on when it will begin scaling back its commodities-friendly stimulus steps and a weak trend at domestic spot markets.
They said, however, falling rupee which made imports costlier, limited the fall.
Meanwhile, gold in Singapore dropped 0.28 per cent to 1,361.80 dollar an ounce.