Silver also tumbled on the back of speculative selling amid subdued industrial off-take.
Standard gold (99.5 purity) fell by Rs 270 to close at Rs 29,040 per 10 gm from last Saturday's closing level of Rs 29,310.
Pure gold (99.9 purity) also slid by Rs 270 to finish at Rs 29,170 per 10 gm from Rs 29,440 previously.
Silver ready (.999 fineness) dipped by Rs 420 per kg to conclude at Rs 56,030 from Rs 56,450 last weekend.
Gold was trading lower in Europe after weekend election in France and Greece which mirrored strong anti- austerity feeling and once again stirred concerns over eurozone debt crisis.
In London, spot gold was trading down at USD 1,639.60 an ounce in early trade and spot silver slipped to USD 30.25 an ounce.