The precious metal had gained Rs 2,595 in previous 14 sessions, its longest winning run this year.
Silver continued its slide on stockists selling and plunged Rs 800 to Rs 35,500 per kg.
Traders said besides weak global trend, fall in demand from jewellers and retailers at existing levels, mainly halted this year's longest two-week rising trend in the yellow metal.
Globally, gold in London was trading 0.58 per cent lower at USD 1,148.20 an ounce and silver shed 0.24 per cent to USD 14.75 an ounce.
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The sovereign, however, remained steady at Rs 22,700 per piece of eight grams in limited deals.
Tracking gold, silver ready declined further by Rs 800 to Rs 35,500 per kg and weekly-based delivery by Rs 665 to Rs 35,195 per kg.
In line with overall trend, silver coins also plummeted by Rs 1,000 to Rs 51,000 for buying and Rs 52,000 for selling of 100 pieces.