However, silver found some low level buying support and recovered by Rs 120 to Rs 45,350 per kg. It had lost Rs 270 in the previous two sessions.
Traders said stockists selling against sluggish demand mainly led to decline in gold prices.
At the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 200 each to Rs 30,160 and Rs 29,960 per ten grams, respectively. Sovereign remained steady at Rs 25,100 per piece of eight grams.
On the other hand, silver ready recovered by Rs 120 to Rs 45,350 per kg and weekly-based delivery by a similar margin to Rs 45,500 per kg.
Silver coins continued to be asked at last level of Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.