Silver also fell on speculative selling on the back of reduced industrial offtake.
Standard gold (99.5 purity) slipped by Rs 130 to close at Rs 29,850 per 10 grams from last Saturday's closing level of Rs 29,980.
Pure gold (99.9 purity) also slid by Rs 135 to finish at Rs 29,985 per 10 gm from Rs 30,120 previously.
Silver ready (.999 fineness) dropped by Rs 375 per kg to end at Rs 53,435 as against Rs 53,810 last weekend.
In Europe, gold was trading weak on stronger dollar ahead of European Union summit as well as US economic data later this week.
Spot gold was bid down at USD 1,566.09 an ounce in early trade, while silver was bid lower at USD 26.68 an ounce.