Snapping its two-day rally, gold prices fell by Rs. 265 to Rs. 31,625 per ten grams in the national capital on Tuesday due to slacked demand at prevailing higher levels, amid a weak global trend.
Silver also declined by Rs. 340 to Rs. 49,010 per kg on lack of buying support from industrial units.
Traders said besides sluggish demand at prevailing higher levels, a weak global trend mainly led to fall in gold and silver prices.
Gold in Singapore, which normally set price trend on the domestic front, fell by 0.33 per cent to $1,312.20 an ounce and silver by 1.10 per cent to $21.99 an ounce.
On the domestic front, gold of 99.5 per cent purity fell by Rs. 265 to Rs. 31,425 per ten grams. It had gained Rs. 390 in last two sessions.
However, sovereign found some local buying support and rose by Rs. 100 to Rs. 25,300 per piece of eight grams.
In line with a general weak trend, weekly based delivery of silver ready advanced by Rs. 200 to Rs. 49,300 per kg on speculators buying.
The white metal had climbed Rs. 850 on Monday.
Meanwhile, silver coins continued to be asked around previous level of Rs. 87,000 for buying and Rs. 88,000 for selling of 100 pieces.