Silver also dropped due to unwinding from stockists and traders, coupled with subdued industrial off-take.
Standard gold (99.5 purity) shed by Rs 190 per 10 grams to conclude at Rs 31,210 from Monday's closing level of Rs 31,400.
Pure gold (99.9 purity) lost by Rs 195 per 10 grams to end at Rs 31,345 as against Rs 31,540.
Silver ready (.999 fineness) declined by Rs 230 per kg to close at Rs 62,880 from Rs 63,110 yesterday.
Globally, gold plunged over by one per cent to hit one- month low spooked by concerns over the looming fiscal cliff crisis in the US despite weak dollar.
Spot gold was bid lower at USD 1,702.24 an ounce in early trade in Europe.
