While gold plunged by Rs 500 to Rs 26,440 per 10 grams, silver lost Rs 1,700 to Rs 53,500 per kg on sluggish demand.
Trading sentiment turned bearish after gold declined in New York as three consecutive weeks of decline encouraged investors to refrain from making fresh purchases.
Gold in global markets, which normally sets the price trend on the domestic front, recorded a sharp fall of USD 40 to USD 1,609.70 an ounce and silver by 6.12 per cent to USD 29.93 an ounce in New York last night.
In addition to this a sluggish local demand at existing higher levels and reduced offtake by industrial units further fuelled the downtrend in the precious metal.
On the domestic front, gold of 99.9 and 99.5 per cent purity plummeted by Rs 500 each to Rs 26,440 and Rs 26,300 per 10 grams, respectively. It had lost Rs 75 yesterday.
However, sovereigns remained in demand and advanced by Rs 100 to Rs 21,700 per piece of eight grams.
In line with a general weak trend, silver ready dropped by Rs 1,700 to Rs 53,500 per kg and weekly-based delivery by Rs 1,260 to Rs 52,440 per kg, respectively.
Silver coins tumbled by Rs 2,000 to Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces.