Silver too slumped on aggressive speculative sell-off coupled with reduced industrial offtake.
Standard gold (99.5 purity) fell by Rs 381 to Rs 29,650 per 10 grams at 1700 hrs from Rs 30,031 yesterday.
Pure gold (99.9 purity) also tanked by a similar margin to Rs 29,820 per 10 grams as against Rs 30,201, according to Riddisiddhi Bullions Ltd.
Silver (.999 fineness) dropped sharply by Rs 756 to Rs 45,300 per kg at 1700 hrs from overnight level of Rs 46,056.
Globally, gold hit three-week lows in early trade after posting its biggest one-day fall, reacting to comments from Federal Reserve head Janet Yellen suggesting US interest rates could rise sooner than expected.
In London, Spot gold fell to USD 1,325.34 an ounce in the morning trade, and silver also dipped at USD 20.29 an ounce.