While gold tumbled by Rs 500 to Rs 31,200 per 10 gm, silver dropped by Rs 1,300 to Rs 60,000 per kg.
Traders said selling pressure gathered momentum after gold dropped to the lowest in more than three months in global markets as signs that US lawmakers may be closer to a budget deal boosted equities and reduced demand for the metal as an alternative asset.
Gold in New York, which normally set price trend on the domestic front, fell sharply by USD 27.20 to USD 1,670.90 an ounce and silver by 1.98 per cent to USD 31.74 an ounce.
In addition, sluggish domestic demand at prevailing higher levels and some investors seen shifting their funds from weakening bullion to rising equity further dampened the sentiment, they said.
On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 500 each to Rs 31,200 and Rs 31,000 per 10 gm, respectively. The metal had climbed by Rs 275 in yesterday. Sovereign followed suit and shed Rs 50 to Rs 25,450 per piece of eight gram.
Similarly, silver ready dropped by Rs 1,300 to Rs 60,000 per kg and weekly-based delivery by Rs 1,170 to Rs 60,680 per kg. Silver coins too plunged by Rs 1,000 to Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.