Gold trades weak on weakening global trend

Gold prices fell in futures trading on Tuesday on traders off-loading part of their holdings in view of the metal weakening across the globe -- which sets price trends in the domestic spot market.

The yellow metal for February-month contract lost 0.65 per cent at Rs 13,243 per ten gram in trading volume of 5,103 lots, while April-month contract dropped 0.61 per cent to Rs 13,270 in trading of 206 lots.

Trading turned bearish after the international markets, which normally set price trend in domestic markets, registered a steep fall in gold prices.

The gold in Asia declined for a fourth day as the dollar rebounded, reducing appeal of the precious metal as an alternative investment.

The dollar rose as much as 0.8 per cent, extending Monday's gain to a three-week high against the euro on speculation that President-elect Barack Obama's plan to cut taxes will help the US recover from a recession faster than other countries.