Silver also extended its slide following heavy speculative unwinding.
Standard gold (99.5 purity) declined by Rs 135 to finish at Rs 30,435 per 10 grams from Wednesday's closing level of Rs 30,570.
Pure gold (99.9 purity) also looked down by Rs 140 to end at Rs 30,580 per 10 grams from Rs 30,720.
Silver ready (.999 fineness) slumped by Rs 510 to close at Rs 45,480 per kg against Rs 45,990.
Overseas, gold snapped its two day decline, as the dollar edged lower and signs of physical demand emerged from Chinese buyers. Gains were kept in check by strong US economic data suggesting end to the Federal Reserve's stimulus.
Activity was relatively thin, as US financial markets will remain closed today for "Thanksgiving holiday".
In London, spot gold rose to USD 1,242 an ounce in early trade and silver was also up at USD 19.70 an ounce.