However, silver recovered by Rs 740 to Rs 47,300 per kg on low level buying by industrial units after yesterday's sharp fall of Rs 1,740.
Marketmen said sustained selling by stockists in tandem with weakening global trend as gains in equities curbed demand for the precious metal as an alternative investment kept pressure on gold prices to trade further lower.
Gold in New York, which normally sets price trend on the domestic front, fell by 0.8 per cent to USD 1,321.60 an ounce and silver by 0.5 per cent to USD 21.24 an ounce.
On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 200 each to Rs 31,100 and Rs 30,900 per ten grams, respectively. It had lost Rs 200 yesterday.
Sovereign also shed Rs 50 to Rs 25,450 per piece of eight grams.
On the other hand, silver ready recovered by Rs 740 to Rs 47,300 per kg while weekly-based delivery plunged by Rs 1,000 to Rs 46,360 per kg on lack of speculative buying.
Silver coins maintained a steady trend at Rs 88,000 for buying and Rs 89,000 for selling of 100 pieces.