Gold and silver took a big knock on Monday and fell sharply as the swirling currents of a European economic turmoil shook the markets. Investors seemed to be ditching or booking profits on the yellow metal - considered a safe haven when stocks get roiled - for hard cash.
Worldwide, stocks, commodities and bullion alike fell, but in India, stocks recovered significantly from an early slump.
Gold witnessed the steepest single-day fall in absolute terms by dropping by Rs 1,708 or 6.38% to Rs 24,992 per 10 grams at the Multi Commodity Exchange's October futures trade before recovering to Rs 25,880, down 3.1%.
"Gold is typically a dollar traded metal and as the US dollar continues to remain pricier following concerns on the US economy, investors are worrying about liquidity. In India, the price of gold could go as low as Rs 24,000 per 10 grams in the short run," said Hitesh Jain, commodity analyst with IIFL.
Silver shed 7.3% for December contract at MCX to touch Rs 49,822 per kg late on Monday after hitting an intra-day low of R45, 824 per kg - with the intra-day fall as high as 13.0%. It had opened at Rs 52,700 per kg.
On the Bombay Stock Exchange, the benchmark Sensex, shed 111.0 points or 0.7% to touch 16,051 points after a steep fall earlier in the day, when it touched a low of 15,801.
The broad-based National Stock Exchange index Nifty dipped below the 4,800 mark, before ending 32.35 points lower at 4,835.40, down 0.66%.
The Sensex has lost 1,000 points since Thursday. The Sensex lost ore than 700 points on Thursday and 199 points on Friday.