Silver also firmed up by Rs 150 to Rs 42,050 per kg on increased offtake by by industrial units and coin makers.
Weak demand from local jewellers led to a decline in gold prices though positive global trend capped the fall, traders said.
Silver also stood steady at Rs 42,300 per kg, despite the white metal losing steam overseas.
Gold prices may trade higher in coming days because of weaker dollar and speculations of US Fed rate cut, HDFC's Tapan Patel.
Silver also declined Rs 125 to Rs 39,075 per kg due to reduced offtake by industrial units.
In Delhi, gold of 99.9 per cent and 99.5 per cent purity held flat at Rs 34,870 per 10 gram and Rs 34,700 per 10 gram.
Globally, spot gold was trading lower at USD 1,394.39 an ounce, while silver was down at USD 15.08 per ounce in New York.
The government in Budget 2019 proposed to increase custom duty on gold and other precious metals to 12.5 per cent.
Gold of 99.9 pc and 99.5 pc purity jumped by Rs 180 each to Rs 34,350 and Rs 34,180 per 10 gram, respectively.
Traders said silver prices rose on pick-up in offtake by industrial units and coin makers at the local spot market.