Silver also maintained a downward trend for the ninth day and lost Rs 550 to Rs 43,400 per kg on poor offtake by industrial units and coin makers.
Traders said besides sustained selling by stockists against subdued demand, strengthening rupee led to persistent fall in prices.
It fell further on weakening global trend as signs of recovery in the US economy reduced demand for the precious metals as safe haven.
Gold in London, which normally sets price trend on the domestic front, fell by 0.87 per cent to $1,294.40 an ounce and silver by 0.33 per cent to $19.67
NRIs on short trips barred from gold imports
Were international gold prices manipulated?
Modi sings in chorus with nemesis Manohar, calls for suspension of IPL 7
Former New Zealand captain Cairns under probe by police, ICC
EPL PHOTOS: Gerrard, Sturridge strikes keep Liverpool in title race