Silver also witnessed a massive speculative unwinding on the back of poor industrial support.
On the global front, gold nose-dived below the psychological USD 1,600-mark to touch a four-month low amidst worsening eurozone debt crisis which led investors in favour of dollars.
Standard gold (99.5 purity) dropped by Rs 385 to close at Rs 28,550 per 10 gm from Tuesday's closing level of Rs 28,935.
Pure gold (99.9 purity) also dipped by Rs 390 to finish at Rs 28,675 per 10 gm from Rs 29,065 previously.
Silver ready (.999 fineness) plunged by Rs 915 per kg to conclude at Rs 54,350 from Rs 55,265 yesterday.
In London, spot gold was bid down at USD 1,585.01 an ounce in early trade, and spot silver fell to USD 28.84 an ounce.
