Gold for December delivery was traded at Rs 29,650, down Rs 200 on the MCX. Silver also dropped in line with gold prices and was down Rs 332 on the MCX.
World powers on Sunday agreed a deal with Iran that would put an end to more sensitive nuclear worries from Iran.
In line with gold prices, crude prices also dropped following the deal, though the cap on Iran's exports was still maintained.
Gold is headed for its first drop in 12 years, unless a sensational recovery in the metal is seen. Gold has consistently lost ground this year, while equities around the globe have rallied to lifetime highs. Check gold rates here