Amid weak trend overseas and subdued demand in spot markets, gold dipped below Rs 27,000 level by falling 0.69 per cent to Rs 26,963 per 10 grams in futures trade on Tuesday.

At the Multi Commodity Exchange, gold for delivery in June, after remaining weak at the outset, fell further to slip below Rs 27,000 level by declining Rs 188, or 0.69 per cent to Rs 26,963 per ten gram after touching a low of Rs 26,932 in 20,718 lots.

Likewise, the metal for delivery in August was down by Rs 175, or 0.64 per cent to Rs 27,363 per ten gram in a turnover of 469 lots.

It touched a low of Rs 27,336. In the spot markets, gold prices fell by Rs 250 to Rs 27,950 per ten gram in the national capital on Tuesday.

Analysts said besides a weak trend in the overseas markets as investors assets holdings shrank, fall in demand in the physical market at current levels, led to a fall in gold prices.

Globally, gold fell 0.40 per cent to USD 1,470.47 an ounce in London on Tuesday.