After yesterday's strong rally, gold prices slipped by Rs 150 to Rs 28,950 per ten grams, largely on its global weakness amid subdued demand from local jewellers.
Silver also dropped by Rs 350 to Rs 41,000 per kg on reduced offtake by industrial units and coin makers.
Traders said apart from a weak trend overseas, fall in demand from jewellers and retailers at current levels mainly led to decline in gold prices.
Globally, gold fell by 0.01 per cent to USD 1,225.70 an ounce and silver by 0.26 per cent to USD 17.25 an ounce in Singapore.
In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 150 each to Rs 28,950 and Rs 28,800 per ten grams respectively. It had surged Rs 450 yesterday.
Sovereign, however, held steady at Rs 24,300 per piece of eight grams.
Following gold, silver ready fell by Rs 350 to Rs 41,000 per kg and weekly-based delivery by Rs 265 to Rs 40,745 per kg.
Silver coins, however, remained unaltered at Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.