Silver followed suit and lost Rs 650 at Rs 44,050 per kg on poor offtake by industrial units and coin makers.
Traders said increased selling by stockists against fall in demand at existing higher levels and a weak global trend mainly pulled down gold prices.
Gold in New York, which normally sets the price trend on the domestic front, fell by 0.30 per cent to USD 1,309.10 an ounce and silver by 0.15 per cent to USD 19.91 an ounce.
In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs 340 each to Rs 28,760 and Rs 28,560 per 10 grams, respectively. It had gained Rs 710 in last three sessions. Sovereigns lost Rs 200 at Rs 24,800 per piece of eight grams.
In line with a general weak trend, silver ready dropped by Rs 650 to Rs 44,050 per kg and weekly-based delivery by Rs 600 to Rs 43,580 per kg. The white metal had gained Rs 650 in the previous two days.
Silver coins, however, held steady at Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces in restricted deals.