Elsewhere, silver continued to witness intense selling for the third straight session following consistent unwinding by traders as well as lack of industrial demand.
The yellow metal dipped to a one-month low in worldwide trade against the backdrop of ongoing uncertainty over the Federal Reserve's interest rate hike amid stronger than expected macroeconomic data.
Standard gold (99.5 purity) declined by Rs 40 to finish at Rs 25,960 per 10 grams from Friday's closing level of Rs 26,000.
Silver (.999 fineness) plunged by Rs 285 per kg to close at Rs 35,195 from Rs 35,480 yesterday.
On the global front, gold for December delivery fell to settle at USD 1,103.30 an ounce on the Comex division of the NYMEX late yesterday and silver December contract also eased to USD 14.505 an ounce.