Gold price plummeted by Rs 520 to Rs 45,420 per 10 gm on Tuesday, while Silver price slipped by Rs 910 to trend at Rs 66,600 per kg, according to the Good Returns website.
Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.
In New Delhi, the price of 22-carat gold slipped by Rs 950 to Rs 44,250 per 10 gm, while in Chennai it inched down by Rs 890 to Rs 42,660. In Mumbai, the rate fell to Rs 44,420 according to the website. The price of 24-carat gold in Chennai also decreased by Rs 970 to retail at Rs 46,540 per 10 gm.
In the international market, Gold prices rose on Tuesday, inching up from a more than eight-month low, as a retreat in the dollar and US Treasury yields lifted demand for the safe-haven metal.
Spot gold was up 0.8 per cent at $1,736.46 per ounce by 1.52 p.m. ET (1852 GMT), after falling to $1,706.70 earlier in the session, its lowest since June 15.
"Gold surges near session highs as yields and USD dip," said Tai Wong, a trader at investment bank BMO in New York. "Gold's $30 rally from the lows in Asia suggests that investors and short-term speculators are bargain-hunting and triggering short covering as well. A close above $1,725 per ounce would be considered by many a key reversal day."
The dollar index slipped 0.3 per cent after hitting a nearly four-week high against its rivals, making gold less expensive for holders of other currencies.
Further supporting gold, benchmark US Treasury yields eased from a one-year high hit last week, while US stocks dipped after strong gains on Monday.
"The main dilemma right now for the gold bulls is the rising short-term US Treasury yields," said Bob Haberkorn, senior market strategist at RJO Futures.
"Despite the US Federal Reserve being very accommodative with stimulus, with low rates for the extended period of time, in the short term, we have to deal with these rising short-term rates."
While gold is considered a shield against inflation, higher yields threaten that status as they increase the opportunity cost of holding bullion.