Silver also plunged by Rs 1,430 per kg on poor offtake by industrial units and coin makers.
Traders said stockists selling in line with a weak global trend amid concern the Federal Reserve will reduce its bond buying as US lawmakers reached a budget agreement, reducing demand for precious metals as a safe haven.
Gold in New York, which normally sets price trend on the domestic front, fell 2.6 per cent to $1,224.90 an ounce and silver by 4.4 per cent to $19.45
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