Traders attributed the fall in the metal's prices to a weak trend overseas where gold is heading for the biggest weekly drop since May as investors anticipate higher US interest rates, and progress on tax reform buoys the dollar, eroding safe-haven appeal of the precious metal.
Meanwhile, gold for immediate delivery has slumped 2.5 per cent this week, the most since the five days ended May 5.
Globally, gold fell 1.27 per cent to USD 1,247.80 an ounce and silver by 1.41 per cent to USD 15.70 an ounce in New York yesterday.
In addition, a considerable fall in demand from jewellers and retailers at the domestic spot market put pressure on the prices, they said.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell further by Rs 200 each to Rs 29,750 and Rs 29,600 per 10 grams, respectively. The precious metal had lost Rs 300 in the previous two days.
Sovereign, however, remained unchanged at Rs 24,400 per piece of eight grams in limited deals.