At the same time, easing concerns over inflationary pressures in the US also weighed on the bullion, a hedge against rising consumer prices. Inflation in the US remained muted last month as the consumer price index rose 0.1 per cent in May 2013 from the previous month.
Further, physical demand for gold from India and China, the two biggest bullion consuming nations, has slowed from the peak demand levels in April and May, taking a further toll on the precious metal.
At the MCX, Gold futures, for the August 2013 contract, are trading at Rs 27,940 per 10 gram, down by 0.10 per cent, after opening at Rs 27,914, against a previous close of Rs 27,967. It touched an intra-day low of Rs 27,891 (At 10:22 AM).