Besides, subdued demand from jewellers and stockists and diversion of funds from bullion to surging equity market weighed on the prices.
Silver fell by Rs 500 to Rs 44,800 per kg on poor offtake by industrial units and coin makers.
Traders said besides weak global cues, strengthening of the rupee against the dollar, which makes imports of gold cheaper and subdued domestic demand, put pressure on the prices.
In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs 230 each to Rs 28,500 and Rs 28,300 per 10 grams, respectively. It had gained Rs 255 yesterday.
Sovereign, however, remained steady at Rs 24,900 per piece of eight grams in limited deals.
Gold in Singapore, which normally sets price trend on the domestic front, traded lower at USD 1,326.20 an ounce from USD 1,326.46 an ounce yesterday.
In a similar fashion, silver ready dropped by Rs 500 to Rs 44,800 per kg and weekly-based delivery shed Rs 20 to Rs 44,320 per kg.
Silver coins continued to be asked at last level of Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.