Gold prices declined on Monday as low demand by domestic jewellers and weak global cues saw the yellow metal ending the day with a loss of Rs. 80 to Rs. 31,520 per 10 gm in the Delhi bullion market.
Silver prices fell Rs. 150 to close at Rs. 46,350 per kg. Ironically, the stock markets also ended with losses of over 1 percent, tracking developments in the US.
This, even as analysts said that in the run-up to the US presidential elections, investors would tend to move away from stocks and look at safe-haven investments such as gold and bonds.
Gold and silver prices have been moving in a narrow range as can be seen from the adjacent graph.
The fall did not affect prices of silver coins that remained unchanged at Rs. 77,000 for buying and Rs. 78,000 for selling 100 pieces, PTI reported.
In the international markets, gold prices fell awaiting the outcome of the US presidential debate between Republican candidate Donald Trump and Democrat Hillary Clinton. It is expected that the outcome of the victory will influence fence-sitters when they vote for either of the two candidates in November.
"With Trump closing the gap with Clinton, the uncertainty is likely to keep gold underpinned," Reuters quoted Alex Thorndike, senior precious metals dealer, MKS PAMP Group, as saying.
A trader from MKS PAMP told the agency that gold prices would trade in the range of $1,330-$1,340 per ounce in the run up to the debate.
A victory for the Republican candidate is seen as positive for gold.
"If Trump is perceived to have an improved probability of winning the Presidential race, that is likely to be supportive of the gold prices, so we could see (gold) prices rallying in the short term amid higher volatility," analyst Vyanne Lai of NAB told Reuters.