Slackened demand from jewellers and retailers at current levels also kept pressure on prices of the precious metal. Silver followed suit and ended lower by Rs 200 to Rs 36,700 per kg on lack of buying support from industrial units and coin makers.
Bullion traders attributed the fall in gold prices to a weakening global trend after the US added the largest number of jobs in almost three years, fuelling concerns that the Federal Reserve will move closer to raising interest rates.
Strengthening dollar against other currencies also reduced the appeal of bullion as an alternative asset, they said.
Globally, gold in New York dropped by 1.4 per cent to USD 1,190.40 an ounce and silver by 1.9 percent to USD 16.25 an ounce in yesterday's trade.
In Delhi, gold of 99.9 and 99.5 per cent purity tumbled by Rs 195 each to Rs 26,675 and Rs 26,475 per 10 grams, respectively. Sovereign, however, remained steady at Rs 23,700 per piece of eight grams in restricted buying.
Silver ready remained under selling pressure and shed another Rs 200 at Rs 36,700 per kg. However, weekly-based delivery traded higher by Rs 200 to Rs 36,700 per kg on increased buying by speculators.
On the other hand, silver coins continued to be asked at last level of Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces in scattered deals.