Tracking weakness in gold, silver prices also tumbled Rs 1,150 to Rs 48,590 per kilogram at the bullion market here.
In tandem with gold prices, silver also dropped by Rs 1,273 to Rs 49,187 per kilogram.
In Delhi, the price of gold for 24 Karat (99.9 per cent purity) during the day rose to Rs 39,271 per 10 gram.
In the international market, gold prices ruled at USD 1,530 an ounce in New York while silver was quoted at USD 18.50 an ounce.
Traders said subdued demand from local jewellers led to the fall in gold prices.
Gold prices have been hitting a fresh high everyday since Tuesday.
Traders attributed the gain in gold to increase in the domestic spot market demand.
Pick-up in demand from local jewellers at the domestic spot market led to the rise in gold prices, analysts said.
Silver, however, plunged Rs 1,150 to Rs 43,000 per kg on reduced offtake by industrial units and coin makers.
Silver surged Rs 630 to hit Rs 44,300 per kg on increased offtake by industrial units and coin makers.