Silver, too, plunged on speculative unwinding coupled with absence of industrial off-take.
Standard gold (99.5 purity) dropped by Rs 354 to quote at Rs 28,660 per 10 grams at 1700 hrs from Tuesday's level of Rs 29,014.
Pure gold (99.9 purity) fell by Rs 349 to Rs 28,813 per 10 grams as compared to Rs 29,162 yesterday, according to Riddisiddhi Bullions Ltd.
Silver (.999 fineness) tumbled by Rs 845 to Rs 43,500 per kg at 1700 hrs as against Rs 44,345 previously.
Globally, gold steadied above one-month lows in early trade, but a firmer dollar, stronger equity markets and signs of a recovery in the US economy are likely to limit gains, while support from physical buying was also lacking.
In London, spot gold was up USD 1,314.60 an ounce in the morning trade and silver also rose to USD 20.05 an ounce.