After two days of gains, gold tumbled by Rs 510 to Rs 31,015 per ten grams in New Delhi on Monday on stockists selling at existing higher levels amid a weak global trend.
Silver also lost Rs 275 to Rs 44,800 per kg on poor offtake by jewellers and coin makers.
Traders said sentiment turned bearish on emergence of stockists selling at existing higher levels amid weak global trend as improving economic growth reduced demand for the precious metals as an alternate investment.
Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.6 per cent to $ 1,245.87 an ounce and silver by one per cent to $ 19.79 an ounce.
In addition, retail customers remained on the sidelines on expectations of further correction in the prices and investors shifting their funds from weakening bullion to rising equities also influenced the sentiment, they said.
On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 510 each to Rs 31,015 and Rs 30,815 per ten grams, respectively. It had gained Rs 310 in the previous two sessions. However, sovereign held steady at Rs 25,200 per piece of eight grams in limited deals.
In a similar fashion, silver ready declined by Rs 275 to Rs 44,800 per kg and weekly-based delivery by Rs 390 to Rs 43,885 per kg. The white metal had gained Rs 275 in last two trades.
Silver coins also dropped by Rs 2,000 to Rs 83,000 for buying and Rs 84,000 for selling of 100 pieces on slump in demand at prevailing higher levels.