Mounting fears over a potential Greek debt crisis and escalating worries about Europe's ability to resolve its debt crisis sent the U.S. dollar higher against all major currencies, undermining the appeal of gold.

Moody's decision to downgrade of six European nations, further boosted the demand for dollar.

The most traded commodity gold for April delivery on MCX opened at Rs 28,062 per 10 grams and was seen trading at Rs 27,970 per 10 grams lower by Rs 149 or 0.51% at 02.35 pm IST.

While the futures for June contract were seen trading at Rs 28,329 per 10 grams lower by Rs 134 or 0.50%.

Spot gold was seen trading down at Rs 27,699 per 10 grams, while silver was down Rs 55,509 per kgs.

While, silver for March delivery on MCX was seen trading at 56,286 per kgs lower by Rs 378 or 0.67%.

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