At the MCX, the gold contract for delivery in August crashed by Rs 524, or 2.06 per cent, to Rs 24,974 per 10 grams in a business volume of 597 lots at the Multi Commodity Exchange.
Also, the metal for delivery in far-month October was trading Rs 519, or 2.02 per cent, down at Rs 25,200 per ten grams in 30 lots.
Analysts said a weak trend in the overseas markets where gold slumped to the lowest in more than five years amid prospects for higher US rates dragged gold futures below Rs 25,000 level here.
While China updated its bullion reserves on Friday for the first time since 2009, 57 per cent increase to 1,658 metric tonnes was smaller than had been estimated.