In the international market, the yellow metal slipped 4.4 percent for the week while silver slumped 15 percent, largely due to pressure from the US dollar that is set for its best week since early April.
While precious metals have been a favourite among investors as safe-haven assets amid the economic uncertainty induced by COVID-19, investors now sought shelter in the US dollar.
A stronger dollar also makes commodities like gold expensive for traders using other currencies.
Concerns over rising coronavirus cases, especially in Europe, and uncertainty on additional stimulus from the US government have especially dented hopes of global economic recovery among investors, causing the dollar to gain (also a safe haven asset) while reducing demand for the yellow metal.
Spot gold fell 0.3 percent to close at $1,861.58 an ounce at 5 pm in New York. In India, gold futures on MCX closed 0.5 percent lower at Rs 49,659 per 10 grams.
Experts believe that the slump may be temporary as uncertainty peaks over the US election. Geopolitical and economic uncertainty has historical proved favourable for gold rates.