Gold futures edged lower last day and traded near their lowest level in more than 19 months, on losses in the global markets and a stronger rupee, triggering bargain buying among physical traders.

The price of gold bullion tumbled another $125 per ounce on Monday in its biggest-ever daily loss, as investors liquidated bullish bets after months of disappointment over the performance of the precious metal. In percentage terms, Monday's 9 percent loss would be the biggest since 1983 and was almost double the loss on Friday.

Commodities fell across the board, but few as hard as gold, which hit a two-year low, and silver which plunged 11 percent. Bullion's collapse caught many veteran investors, who see gold as portfolio protection against inflation and other market risks, by surprise. Monday's drop eclipsed the rout on Jan. 22, 1980, a day after gold hit its then-record $850 on global panic over oil-led inflation due to Soviet intervention in Afghanistan and the Iranian revolution. There have been no sudden changes in the macroeconomic argument for gold in the last week, although numerous factors have kept gold from rising this year are as below.