Silver also met with resistance at prevailing higher levels and lost Rs 300 at Rs 44,000 per kg. The white metal had gained Rs 2130 in the previous two session.
Traders said sustained selling by stockists against sluggish demand and a weak global trend mainly kept pressure on gold prices for the second straight day.
Gold in New York, which normally sets the price trend on the domestic front, fell by USD 6.30 to USD 1,369.70 an ounce and silver by 0.71 per cent to USD 22.27 an ounce.
Sovereigns remained steady at Rs 23,700 per piece of eight grams in restricted buying activity.
In line with a general weak trend, silver ready declined by Rs 300 to Rs 44,000 per kg and weekly-based delivery by Rs 1,195 to Rs 43,170 per kg for want of support.
On the other hand, silver coins maintained steady trend at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.