Gold prices declined by Rs 315 to Rs 31,500 per ten gram, while silver lost Rs 850 to Rs 48,000 per kg on reduced offtake.
Traders said heavy selling by stockists, triggered by a weak global trend, led to the fall in prices of gold and silver.
Sentiments were also affected by the speculation that a recovering US economy will spur the Federal Reserve to taper, reducing demand for the metals as an alternative investment.
Gold in New York, which normally sets price trend on the domestic front, plunged by $15.70, or 1.22 per cent, to $1266.20 an ounce and silver by 3.04 per cent to $20.70
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