Silver also dropped by Rs 400 to Rs 45,000 per kg on reduced offtake by industrial units and coin makers.
Traders said selling by stockists amid a weak global trend as a rally in equities dampened demand for an alternative investment amid concern that physical consumption is faltering mainly influenced the sentiment.
Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.7 per cent to USD 1,294.98 an ounce, the lowest since July 16 and silver by 0.6 per cent to USD 20.79 an ounce.
Besides, sluggish domestic demand from jewellers at prevailing levels dampened the sentiment.
In Delhi, gold of 99.9 and 99.5 per cent purity fell by Rs 160 each to Rs 28,200 and Rs 28,000 per 10 grams, respectively. It had gained Rs 160 yesterday.
Sovereign, however, held steady at Rs 24,900 per piece of eight grams.
In a similar fashion, silver ready declined by Rs 400 to Rs 45,000 per kg and weekly-based delivery by Rs 460 to Rs 44,635 per kg. It had gained Rs 200 in the previous session.
On the other hand, silver coins ruled steady at Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.