Silver also declined on speculative selling amid subdued industrial off-take.
Standard gold (99.5 purity) slid by Rs 260 to end at Rs 29,680 per 10 gm from Wednesday's closing level of Rs 29,940.
Pure gold (99.9 purity) dipped by Rs 240 to conclude at Rs 29,835 per 10 gm from Rs 30,075.
Silver ready (.999 fineness) fell by Rs 250 per kg to finish at Rs 55,665 as compared to Rs 55,915 previously.
In New York, gold surged on news of lower US productivity data as well as weaker dollar, and on the back of optimism over the eurozone's willingness to do more for tackling debt crisis.
Gold for August delivery climbed USD 17.30 to USD 1,634.20 an ounce on the Comex division of the NYMEX late yesterday.
Silver for July contract up USD 1.08 to USD 29.49 an ounce.