While gold fell by Rs 120 to Rs 27,880 per 10 grams, silver lost Rs 900 to Rs 57,400 per kg on reduced offtake.
Trading sentiments turned bearish after gold declined from a five-week high in global markets on hopes easing eurozone debt crisis might dampen demand for the precious metals as an alternate investment, traders said.
Gold in global markets, which normally sets the price trend on the domestic front, fell by 0.1 per cent to USD 1,747.20 an ounce in New York, after touching day's high of USD 1,754.
In addition, retailers refrained from purchasing at prevailing higher levels.
On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 120 each to Rs 27,880 and Rs 27,740 per 10 grams, respectively. The metal had climbed to Rs 28,000 yesterday. Sovereigns followed suit and shed Rs 100 to Rs 22,100 per piece of eight grams.
Similarly, silver ready dropped by Rs 900 to Rs 57,400 per kg and weekly-based delivery by Rs 415 to Rs 57,365 per kg, respectively. The metal had gained Rs 2,300 in the previous session.
Silver coins also tumbled by Rs 2,500 to Rs 62,500 for buying and Rs 63,500 for selling of 100 pieces.