Silver also lost Rs. 250 to Rs. 61,000 per kg on reduced offtake by industrial units.
Traders said fall in demand at prevailing higher levels and weak cues from overseas market mainly led to the fall in gold prices.
In New York, gold prices fell by 0.4% to $1,773.90 an ounce.
On the domestic front, gold of 99.9 and 99.5% purity fell by Rs. 220 each to Rs. 31,580 and Rs. 31,380 per 10 grams, respectively. The metal has lost Rs. 310 in last three sessions.
Sovereign continued to be asked around previous level of Rs. 25,400 per piece of eight grams.
Silver ready declined by Rs. 250 to Rs. 61,000 per kg, while weekly-based delivery spurted by Rs. 1,520 to Rs. 62,770 per kg on the back of speculators buying.
Silver coins remained steady at Rs. 77,000 for buying and Rs. 78,000 for selling of 100 pieces.