"Risk appetite returned following encouraging economic numbers and news reports of a new effective coronavirus vaccine in Russian Federation increased risk appetite further lowering expectations of further monetary stimulus making Gold less attractive", said a note by brokerage Phillip Futures.
On MCX, gold October futures fell Rs 422 or 0.77 per cent to trade at Rs 54,524 per 10 grams, while silver September futures declined Rs 823 or 1.09 per cent to rule at Rs 75,010 per kg. At 4:40 pm, the MCX silver futures contract quoted at Rs 72,535, down 3.79 per cent (Rs 2,859) from its previous close.
Experts are of the view that after a smart rally in the past few sessions some profit-booking was on cards.
Gold futures on MCX were down 0.56 per cent or Rs 306 at Rs 54,640 per 10 grams-hovering a tad below record highs. The index is comprised of publicly traded companies that operate globally in both developed and emerging markets, and are involved primarily in the mining for gold and, in mining for silver. Spot gold was down by 0.5 percent to $2,017.98 per ounce as the American currency firmed up amid tensions between the United States and China after Beijing imposed sanctions on American officials.
At MCX, Gold settled around Rs 55,000 with around 0.50 percent gains and silver settled around Rs 75,600 with around 2 percent gains.
Gold has been on an incredible bull-run throughout 2020, with the precious metal surging over 35% this year.
The Bloomberg Dollar Spot Index dropped for a second day.
"Precious metals are also getting support from geopolitical tensions, record surge in coronavirus cases and fear of lower global growth".
In New Delhi, the price of 22-carat gold rose to Rs 54,100 per 10 gram, and in Chennai to Rs 53,580.
Technically, LBMA GOLD Spot traded in a range of $2,019-$2,049 levels where it ended on a negative note below $2,030 levels. Resistance holds at Rs 55,200-55,500 level and support is at Rs 54,700-54,200 levels.
Meanwhile, Comex gold was trading 0.49% lower at $ 2,014 per ounce, after hitting an all-time high of 2,063 in the previous week.
The gold-silver ratio indicates how many ounces of silver are required to buy one ounce of gold.