Silver remained under selling pressure and fell by another Rs 250 to Rs 34,350 per kg on poor offtake by industrial units and coin makers.
Signs of improving US economic growth further diminished the metal's appeal as a safe haven, easing demand from jewellers and retailers at domestic spot market and kept pressure on the prices.
Strengthening dollar too weighed on gold prices.
Gold in New York, which normally determines price trend on the domestic front, dropped 1 per cent to settle at USD 1,131.90 an ounce, after touching USD 1,129.60, the lowest since April 2010. Silver also slid 1 per cent to USD 14.83 an ounce.
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Sovereign followed suit and traded lower by Rs 100 at Rs 22,900 per piece of eight grams.
Following gold, silver ready declined further by Rs 250 to Rs 34,350 per kg and weekly-based delivery by Rs 245 to Rs 34,200 per kg.
Silver coins plunged Rs 2,000 to Rs 50,000 for buying and Rs 51,000 for selling of 100 pieces.