Silver, however, extended gains for the third day by adding Rs 50 to Rs 42,300 per kg on increased offtake by industrial units.
Traders said fresh selling by stockists against slackened demand at current higher levels mainly led to fall in gold prices.
In addition, appreciation in the rupee against the dollar also influenced the sentiment, they said.
In Delhi, gold of 99.9 and 99.5 per cent purity plunged Rs 350 each to Rs 29,950 and Rs 29,750 per 10 grams, respectively, a level last seen on April 12.
Sovereign followed suit and lost Rs 100 at Rs 25,000 per piece of eight grams.
On the other hand, silver ready continued its rising trend and gained another Rs 50 to Rs 42,300 per kg and weekly-based delivery inched up by Rs 10 to Rs 41,890 per kg. The white metal had gained Rs 550 in the previous two sessions.
Silver coins met with resistance at higher levels and dropped by Rs 1,000 to Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.