Renewed talks of gold sale by the IMF amid firming equities pulled down gold by Rs 350 to Rs 14,900 per 10 gram as traders indulged in selling part of their holdings.
With the general weakening trend, silver also tumbled by Rs 500 to Rs 21,300 per kg.
Ripples of the trend in overseas markets, where gold tumbled below $900 an ounce, were felt on the domestic front as the precious metal dropped to levels last seen on February 16.
Discussion at a summit of G20 world leaders about selling International Monetary Fund gold to raise extra funds refers to sales over and above existing plans.
Marketmen said the traders were expecting that the flood of gold in the the market might increase demand-supply gap.
They said investor's money was seen shifting from bullion to surging stock markets on growing optimism that the worst of the global economic slump may be over now.
The real impact of the summit on financial markets would be clear on their reopening on Monday after a long week-end, they added.
Asian stocks gained for a third day as leaders from the Group of 20 pledged more than one trillion dollar in emergency aid to cushion the global recession.
