However, silver gained Rs 50 to reclaim the Rs 47,000 per kg mark on increased offtake by industrial units.
Traders said a muted demand from jewellers at the prevailing higher levels and a weak trend overseas mainly contributed to the fall in gold prices.
In worldwide trade, gold fell 0.33 per cent to $1,345 an ounce in New York in Wednesday's trade.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity slumped by Rs 250 to Rs 31,300 and Rs 31,150 per 10 grams, respectively. It had gained Rs 600 in the previous five days.
On the other hand, silver ready edged up by Rs 50 to Rs 47,000, while weekly-based delivery declined by Rs 110 to Rs 47,315 per kg on lack of speculative buying support.
Silver coins, however, dropped by Rs 1,000 to Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.
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