Silver coins also plunged by Rs 2,000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces on reduced offtake.
Traders said both precious metals' fell for the third day in a row due to fall in demand amid a weak global trend.
While gold lost Rs 360 in last two trading sessions and silver fell by Rs 800.
Gold declined in global markets as some investors sold the metal after its rally to the highest price in more than six months, they added.
In London, gold fell by 0.7 per cent to USD 1,760.35 an ounce and silver by 1.9 per cent to USD 33.87 an ounce.
On the domestic front, gold of 99.9 and 99.5 per cent purity lost Rs 190 each to Rs 31,950 and Rs 31,750 per 10 grams, respectively.
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Sovereign followed suit and shed Rs 50 to Rs 25,400 per piece of eight grams.
Silver ready drifted by Rs 800 to Rs 60,400 per kg and weekly-based delivery by Rs 880 to Rs 62,360 per kg.