Silver also declined owing to continued selling by speculators on the back of reduced industrial demand.
Standard gold (99.5 purity) dropped by Rs 130 to close at Rs 30,705 per 10 gm from Wednesday's close of Rs 30,835.
Pure gold (99.9 purity) dipped by Rs 125 to finish at Rs 30,845 per 10 gm from Rs 30,970 yesterday.
Silver ready (.999 fineness) lost Rs 90 per kg to conclude at Rs 58,500 as against Rs 58,590 previously.
In New York, gold traded lower on higher dollar and as investors continued to wait for Central Bankers meeting on Friday amid signs of new round of easing measures by the US Federal Reserve to prop up growth in the world's top economy.
Gold for December delivery declined by USD 6.70 to USD 1,663 an ounce on the Comex division of the NYMEX late yesterday.
Silver for September delivery eased 4 cents to USD 30.84 an ounce.