Earlier in the day, the August contract of gold surged Rs 333 to hit an all-time high of Rs 48,289 per 10 grams.
Currently it is trading at Rs 47,904.00, lower by Rs 33 or 0.07 per cent from its previous close.
Gold prices in India saw an increase following the jump in international markets.
In global markets, gold prices on Monday hit a one-month high as a surge in coronavirus cases dented investor sentiment towards riskier assets.
Off late, the prices of the yellow metal has surged amid the rising number of coronavirus cases and the uncertainty of the global economy.
Investors tend to move towards gold during uncertain times, as it is considered a safe haven asset compared to other asset classes such as stock markets and bonds.
In the spot market too, gold prices rose on Monday. In Delhi, price of 10 grams of 24 carat gold went up by Rs 10 to 47,970.
Gold prices have also been lifted by a wall of cash from governments and central banks around the world as they continue to provide much-needed support to pandemic-hit economies. Accordingly, gold prices have continued to hit new highs since early April.
The gold prices have risen from a level of Rs 38,200 (10 gm, 22 karat gold) and Rs 39,200 (10 gm, 24 karat gold) at the beginning of current calendar year.