Gold prices have declined by ₹105 to ₹59,975 per 10 grams in the national capital on Monday amid a fall in prices of precious metal internationally. The yellow metal settled at ₹60,080 per 10 grams in the previous trade.

Silver, however, zoomed ₹730 to ₹75,700 per kg.

"Spot gold prices in the Delhi markets traded at ₹59,975 per 10 grams, down ₹105 per 10 grams," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

In the overseas market, gold was quoting lower at $1,981 per ounce while silver was up at USD 25.12 per ounce.

Traders avoided fresh buying before the key event of the US Federal Reserve’s meeting on Wednesday, Gandhi said.

Gold prices eased on Monday as the US dollar held firm, with cautious traders awaiting the Federal Reserve's interest rate hike decision later this week.

Spot gold fell 0.5% to $1,980.78 per ounce by 0759 GMT. U.S. gold futures shed 0.5% to $1,989.20.

The dollar index rose 0.2%, making greenback-priced bullion more expensive for overseas buyers.

The Federal Open Market Committee (FOMC) will meet on May 2-3, and investors are largely expecting a 25 basis-point interest rate hike.

Data on Friday highlighted that U.S. consumer spending was unchanged in March, while underlying inflation pressures remained strong, which could see the U.S. central bank raising interest rates.

Bullion is known as an inflation hedge, but rising rates tend to dull the zero-yielding asset's appeal.

Gold prices rose more than 1% in April as renewed concerns over turmoil in the U.S. banking sector enhanced its safe-haven appeal for investors.