Silver on the other hand was trading with gains of Rs 138 at Rs 44077.
International prices of gold are headed for their biggest loss in 32 years, according to news reports. In fact, if gold does not recover by at least 25 per cent until Dec 31, it would be heading for its first decline in 13 years.
Gold has fallen consistently this year as investors continue to chase equities and shun gold. Economic recovery around the globe and the Fed decision to taper its QE3 programme has weighed on gold prices this year.
India which is the largest consumer of gold has seen gold consumption slump as the government has unveiled a series of measures to discourage gold consumption.