Silver too weakened by Rs 435 to Rs 37,880 per kg due to reduced offtake by consuming industrial units.
Marketmen attributed the slide in gold prices to easing demand from local jewellers and retailers in the domestic spot market, but a firm trend overseas capped the fall.
Globally, gold edged up by 0.06 per cent to USD 1,250.80 an ounce and silver rose 0.45 per cent to USD 14.77 an ounce in New York.
In the national capital, gold of 99.9 per cent and 99.5 per cent purities declined by Rs 210 each to Rs 31,850 and Rs 31,700 per 10 gram, respectively. The precious metal had gained Rs 60 Tuesday.
Sovereign, however, held steady at Rs 25,000 per piece of 8 gram on little doing.
In sync with gold, silver ready traded lower by Rs 435 to Rs 37,880 per kg, while weekly-based delivery was down by Rs 448 to Rs 37,433 per kg.
Silver coins, however, were unchanged at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.