Silver prices also dipped and lost Rs 330 to Rs 39,490 per kg due to reduced offtake by industrial units.
Standard gold (99.5 purity) fell by Rs 120 to conclude at Rs 30,440 per 10 grams from Monday's closing level of Rs 30,560.
Pure gold (99.9 purity) also shed by a similar margin to end at Rs 30,590 per 10 grams compared to Rs 30,710 earlier.
Silver (.999 fineness) slumped by Rs 330 to finish at Rs 39,490 per kg from Rs 39,820 previously.
Globally, gold hit its lowest in more than six months as a sell off in global risk assets eased and the precious metal remained under pressure from the prospect that rising US interest rates will further support the dollar.
Spot gold was down by 0.6 per cent at USD 1,256.45 an ounce, at early trade.
In other precious metals, silver was down by 0.7 per cent at USD 16.19 an ounce.