Silver also dropped sharply owing to heavy speculative selling.
Standard gold (99.5 purity) fell by Rs 85 to close at Rs 27,315 per 10 grams from Tuesday's level of Rs 27,400.
Pure gold (99.9 purity) shed by Rs 90 to settle at Rs 27,460 per 10 grams as compared to Rs 27,550.
Silver (.999 fineness) slumped by Rs 210 to conclude at Rs 39,475 per kg against overnight close of Rs 39,685.
On the global front, the shiny metal rose to the highest level in six-weeks on concerns over cooling global economy after China's third-quarter growth plunged to multi-year low.