Silver also plunged on the back of reduced demand from industrial users.
Standard gold (99.5 purity) slumped by Rs 198 to quote at Rs 30,458 per 10 grams at 1700 hrs from Monday's level of Rs 30,656.
Pure gold (99.9 purity) also fell by a similar margin to Rs 30,558 per 10 grams from Rs 30,756 previously, according to Riddisiddhi Bullions Ltd.
Silver (.999 fineness) skidded by Rs 443 to Rs 46,952 a kg at 1700 hrs from Rs 47,395 yesterday.
Globally, the shiny metal retreated from its multi-month highs on heavy profit-taking by stockists as equities rebounded sharply from overnight sharp fall on the back of easing concerns over the crisis in Ukraine following Russia's decision to call back its troops.
Mounting geopolitical tensions following the stand-off between Russia and Ukraine had sparked a rally in precious metals yesterday on safe-haven demand.
Spot gold was bid lower at USD 1,339.84 an ounce in early European trade and silver dropped to trade at USD 21.24 an ounce.