Gold prices fell by Rs 85 at the bullion market here due to fresh bout of selling by stockists and investors amid lack of local buying support.
Silver also dropped sharply owing to frantic speculative unwinding.
Standard gold (99.5 purity) slipped by Rs 85 to settle at Rs 27,295 per 10 grams from overnight level of Rs 27,380.
Pure gold (99.9 purity) also shed by a similar margin to end at Rs 27,445 per 10 grams against Rs 27,530 previously.
Silver (.999 fineness) tanked by Rs 470 to conclude at Rs 38,285 per kg compared to Rs 38,755 yesterday.
On the global front, the yellow-metal extended gains for the second day on escalating geo-political tensions amid concerns over Greece turmoil.
Spot gold was moderately higher at USD 1,243.05 an ounce in early Eurpean trade.
