The renewed political impasse in Greece prompted investors to close off bets in yellow metal. Gold futures for June delivery on Multi Commodity Exchange(MCX) were seen trading lower Rs 223 at Rs 28,455 per 10 grams at 2.45 pm IST.
Spot gold on MCX fell to Rs 28,458 per 10 grams and silver rose marginally to Rs 53,657 per kgs.
The sentiments were further dampened on worries over the fiscal health of the Spain due to its banking system. Globally, investors are parking surplus to the dollar due to rising fears about the future of the euro zone.
In India, there was sluggish demand for gold as marriage season coming to an end. Gold of 99.9 and 99.5% purity rose to Rs 28,840 and Rs 28,940 per 10 grams, respectively.
Silver for July delivery on MCX lost Rs 580 and was seen trading at Rs 54,579 per kgs.