The precious metal settled at Rs 46,502 per 10 grams in the previous trade.
Silver also dipped by Rs 178 to Rs 59,217 per kg, from Rs 59,395 per kg in the previous trade.
The rupee surged 31 paise to close at 74.03 (provisional) against the US dollar on Monday. It appreciated by 18 paise to 74.16 against the US dollar in the opening trade.
In the international market, gold was trading lower at $1,794 per ounce and silver was flat at $22.28 per ounce.
“Gold prices traded down with spot gold prices at COMEX trading at USD 1,794 per ounce on Monday. Gold prices traded under pressure on firm dollar and strong US bond yields,” HDFC Securities Senior Analyst (Commodities) Tapan Patel said.