In today’s session, gold futures turned lower after government data showed U.S. consumer prices unexpected fell during the last month, and posted their first 12-month fall since 1955, denting the metal's appeal as an inflation hedge.

Gold prices fell by Rs 80 in the bullion market on Wednesday because of profit booking amid strong stock markets.

The purchasing for the present marriage season and an improved curve in London bullion market failed to improve prices and prices chop down after traders and stockists indulged in profit booking at advanced levels.

Shifting of funds to the rising bourses also impacted the outlook. 

Standard gold and ornaments dropped by Rs 80 each to Rs 14,590 per 10 gram and Rs 14,440 per 10 gram respectively.

Sovereign declined by Rs 50 at Rs 12,350 per piece of eight gram.

Silver ready dropped by 40 to Rs 21,360 per kg and weekly-based delivery by Rs 35 to Rs 21,065 per kg.

Silver coins fell by Rs 100 at Rs 28,000 for buying and Rs 28,100 for selling of 100 pieces.

The precious metal hit a record high of $1,032.70 per ounce on March 17, 2008.

In its annual gold survey report, precious metals consultancy GFMS said that the gold prices could hit record level above $1,100 an ounce during the coming months, as investors seek to guard against growing inflation.