Gold slid below $930 an ounce on COMEX before trimming those losses late in Monday's session, but all precious metals prices remained sharply lower as investors opted for less risky assets. The losses on MCX were less severe owing to the sharp fall in rupee against the dollar.

Silver futures posted losses in line with other industrial metals. Silver prices slid sharply by about 5 percent on COMEX and 2.68 percent on MCX.

IN FOCUS:

Holdings of Julius Baer's gold-backed exchange-traded fund rose 39,200 ounces or 2 percent on Friday, the bank said in its weekly statement.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,065.49 tonnes as of Aug. 17, unchanged from the previous business day.

Gold ounces transferred between accounts held by bullion clearers fell 13.6 percent to a daily average of 17.7 million ounces in July from a month earlier, the London Bullion Market Association (LBMA) said on Monday.

World stocks fell nearly 2 percent, with the benchmark MSCI world equity index heading for its biggest one-day loss since early July. The CBOE VIX index, seen as Wall Street's 'fear gauge', jumped 15 percent.

Indian festival demand may perk up, and which may also support Gold prices. India’s Gold imports so far has been sluggish but considering the fact marriage season is ahead, retail demand may improve.

FUNDAMENTAL OUTLOOK:

Gold may remain subdued and trade range bound during the day as the inflationary concerns have faded for the moment. We expect an upside in Silver as it may follow other industrial metals which may rise on the back of strong housing numbers from the U. S. We recommend buying Silver at dips.