India, Nov. 12 -- Declining for the third straight session, Gold futures fell Rs 1,207 to Rs 1.38 lakh per 10 grams on Thursday, as stronger-than-expected US inflation data reinforced expectations of further policy tightening by the Federal Reserve. On the Multi Commodity Exchange, yellow metal contracts for December delivery traded lower by Rs 1,207, or 0.86 per cent, at Rs 1,38,509 per 10 grams.

"MCX gold futures are facing renewed pressure as stronger-than-expected US inflation data has strengthened expectations of further Federal Reserve tightening," said Vikram Subburaj, CEO at Giottus.com.

A stronger dollar and rising US Treasury yields are further reducing the attractiveness of bullion, he added. Silver futures declined by Rs 2,3...