Sentiment was affected as speculators preferred to book profits amid weak global trend, subdued demand in spot market also weighed.
Gold on MCX for December delivery was seen trading at Rs 31,677 per 10 grams lower by 40%.
MCX spot gold slipped and was trading at Rs 31,355 per 10 grams, while spot silver fell to Rs 60,451 per kg.
While, silver for March delivery on MCX was seen trading at Rs 62,310 per kg.
Delhi spot gold of 99.9% and 99.5% purity was at Rs 31,950 and Rs 31,750 per 10 grams, respectively.
International gold on Monday fell more than 1% and was seen hovering at $1,758 an ounce.
Gold lost its winning streak as dollar strengthened against major currencies, which prompted investors to close off bets in yellow metal.