Precious metals slid on Monday as the dollar rose amid optimism about its status as a world reserve currency, but economic head winds bolstered gold's safe-haven appeal and capped the downside. However, the dollar rose broadly after Russia's finance minister expressed confidence in the greenback as the world's reserve currency.

Gold futures broke below $930 an ounce on Monday, losing 1.40 percent while Silver futures lost over 5 percent on COMEX. However, the loss on MCX was less severe as compared to loss on COMEX.

Holdings of the SPDR Gold Trust, the world's largest bullion exchange-traded fund, were static for a fifth session on Monday.

Mexican miners lifted a nearly two-month-long strike at the El Cubo gold mine owned by Canada's Gammon Gold after winning a wage deal, the union and the company said on Monday.

Asset manager Fortis Investments told Reuters it favors gold as a longer-term play on both inflation and deflation. Gold is seen as an asset that holds its value in volatile times.

Due to strengthening of dollar and weak retail as well as investment demand triggered a selloff in Gold. Gold looks weak for the day as dollar’s strength is adversely impacting yellow metals. We recommend selling gold at rise. We expect Silver prices to trade sideways to down during the day with a correction in industrial metals.