Silver also fell on speculative selling coupled with subdued industrial demand.
Standard gold (99.5 purity) slipped by Rs 120 to close at Rs 29,930 per 10 grams from Tuesday's closing level of Rs 30,050.
Pure gold (99.9 purity) also slid by Rs 125 to finish at Rs 30,065 per 10 gm from Rs 30,190 previously.
Silver ready (.999 fineness) dropped by Rs 740 per kg to conclude at Rs 53,610 as against Rs 54,350 yesterday.
In New York, gold eased as investors weighed US economic data amidst negative developments in Europe ahead of leaders summit later this week.
Gold for August delivery lost USD 13.50 to USD 1,574.90 an ounce on the Comex division of the NYMEX late yesterday.
Silver for July contract fell by 48 cents to USD 27.04 an ounce.