Gold on the MCX was trading lower by Rs 105 at Rs 29,965, while Silver also dropped by Rs 239 at Rs 44760.
International prices of gold fell to a 4-month low on fears that the US stimulus would be withdrawn earlier then expected.
Spot gold in the international market was trading at $1,248 an ounce very close to its 4-month low of $1240 an ounce.
Gold prices are likely to move in tandem with news emanating from the Fed as regards its asset purchase programme.
Gold and equities have in the past had wild swings based on reports on the possibility of the Fed maintaining or reducing its asset purchase programme. Check gold rates here