However, silver held steady at Rs 41,100 per kg on scattered enquiries from industrial users.
Bullion traders said besides a weak trend overseas, sluggish demand from jewellers at the domestic spot market led to the fall in gold prices.
Globally, the metal fell 0.41 per cent to $1,271.50 an ounce in Singapore.
It gained Rs 100 on Wednesday.
Sovereign, however, remained flat at Rs 23,300 per piece of eight grams.
On the other hand, silver ready continued to be traded at Wednesday's level of Rs 41,100 per kg, while weekly-based delivery traded lower by Rs 100 to Rs 41,230 per kg on lack of speculators' buying support.
Silver coins, however, remained unaltered at Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.
India's new Mauritius treaty signals end of shopping for tax havens
'Tokyo won 2020 Olympics bid in a clean way'
Indian marine engineer held captive in Nigeria returns, thanks Centre
Mauritius pact: 5 key areas impacted by the new protocol