On the other hand, silver rose by Rs 100 to Rs 43,400 per kg on increased industrial demand.
Traders said stockists selling in line with a weak global trend on speculation that the Federal Reserve will further reduce monetary stimulus led to decline in gold prices.
Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.2 per cent to USD 1,293.68 an ounce.
Appreciations of the rupee against the American currency also influenced gold prices, they said.
In Delhi, gold of 99.9 and 99.5 per cent purity fell by Rs 130 each to Rs 30,600 and Rs 30,400 per 10 grams, respectively.
It had gained Rs 110 yesterday. Sovereign, however, held steady at Rs 25,100 per piece of eight grams.
On the other hand, silver ready advanced by Rs 100 to Rs 43,400 per kg while weekly-based delivery lost Rs 220 to Rs 42,280 per kg. The white metal had gained Rs 50 in last trade.
Silver coins maintained a steady trend at Rs 82,000 for buying and Rs 83,000 for selling of 100 pieces.