Silver also eased by Rs 39 to Rs 43,500 per kg on lack of buying support from industrial units and coin makers.
Traders said stockists selling along with lower global trend and strengthening rupee against the dollar mainly influenced the trading sentiment.
Gold in New York, which normally set the price trend on the domestic front, fell by less than 0.1 per cent to USD 1,294.30 an ounce.
Investors shifting their funds from bullion to soaring equities also brought down demand for the precious metals, they said.
On the domestic front, gold of 99. 9 and 99.5 per cent purity shed Rs 5 each at Rs 29,350 and Rs 29,150 per ten gram respectively. It had gained Rs 5 yesterday. Sovereign, however, held steady at Rs 24,800 per piece of eight gram.
Silver ready declined by Rs 39 to Rs 43,500 per kg and weekly-based delivery by Rs 279 to Rs 42,760 per kg. The white metal had gained Rs 139 in the previous session.
Silver coins also plunged by Rs 1,000 to Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.