Silver too declined in line with gold and Silver for April delivery was trading at Rs 43,640, down by Rs 555.
International prices of gold touched an intra day low of of $1,381.80 an ounce on Tuesday and stood at $,1380. The metal has tumbled by 17 percent so far this year after gaining for 12 successive years in a row.
There were reports that after a almost 20 per cent dip there was frenzied buying by investors in gold coins and bars. Analysts see a little more dip in gold and a sharp recovery is ruled out unless economic fundamentals around the globe get worse.