Gold for delivery in June dropped Rs 140 or 0.48 percent to Rs 29,160 per 10 gram in a business turnover of 971 lots at the Multi Commodity Exchange.
Spot gold was little changed at USD 1,226.41 per ounce by 0033 GMT. The metal fell to USD 1,223 earlier in the session, the lowest since April 7.
Sentiment remained largely lacklustre, in tune with a sluggish global trend, as investors weighed prospects of a US interest rate rise, which strengthened outlook for the dollar and dented the metal's appeal.
At Multi Commodity Exchange, gold prices for delivery in far-month August fell Rs 89, or 0.30 percent, to Rs 29,860 per 10 grams in business turnover of 83 lots.
Spot gold edged down 0.1 percent to USD 1,247.30 per ounce by 0056 GMT. The metal fell to USD 1,242.63 an ounce, the lowest since April 28 on Monday.
Bullion has been under pressure since the Fed released the minutes of their April meeting last week that showed officials believe the US economy could be ready for another interest rate increase next month.
In futures trading at Multi Commodity Exchange, gold for delivery in June fell Rs 279, or 0.93 percent, to Rs 29,776 per 10 gram, in a business turnover of 13,815 lots.
Spot gold was little changed at USD 1,258 per ounce at 0038 GMT. The metal fell 1.7 percent in the previous session, hitting a three-week low of USD 1,254.65.
Bullion traders said sentiment remained bearish largely in tandem with a weak global trend where gold snapped three days of gains after strong inflation data that fuelled talk of an interest rate hike.
Spot gold was little changed at USD 1,278.65 per ounce at 0042 GMT, after gaining 0.5 percent on Tuesday.
Silver also eased by Rs 160 to Rs 41,100 per kg on lack of buying support from industrial units and coin makers.
At the Multi Commodity Exchange, gold for delivery in June was trading higher by Rs 77, or 0.26 percent, to Rs 30,054 per 10 gram, in a business turnover of 634 lots.
The dollar firmed on Tuesday as a recovery in crude prices lifted equities and US Treasury yields, and lessened demand for the safe-haven yen.
Gold for delivery in June was trading higher by Rs 67, or 0.22 percent, to Rs 30,101 per 10 gram with a turnover of 1,113 lots at the Multi Commodity Exchange.
Spot gold gained 0.4 percent to USD 1,277.7 an ounce by 0244 GMT, while US gold futures added 0.5 percent to USD 1,279.5 an ounce.
Bullion traders said lower demand from jewellers and retailers at existing levels led to the fall in gold prices, but a firming trend overseas capped the fall.
Bullion traders said sentiment bolstered after gold edged higher in global markets and jewellers accelerated their buying activity at the domestic market, helping the yellow metal to again cross the Rs 30,000-mark.
However, Quantum AMC Senior Fund Manager (Alternative Investments) Chirag Mehta believes that investors may come back on the buying side if the positive returns on gold sustain over next few months.
Gold for delivery in June contracts was trading Rs 53 or 0.18 percent lower at Rs 29,882 per ten grams in a business turnover of 23 lots at the Multi Commodity Exchange.
At the Multi Commodity Exchange, gold for delivery in June was trading higher by Rs 167, or 0.56 percent, to Rs 29,950 per 10 grams, in a business turnover of 202 lots.
Spot gold was little changed at USD 1,266.70 an ounce by 0044 GMT, after touching a low of USD 1,257.25 on Tuesday, its weakest since April 28.
Marketmen said sentiment remained bearish largely in tune with a weak global trend and fading demand from jewellers and retailers at current levels at the domestic spot markets.
Spot gold was off 0.3 percent at USD 1,260.31 an ounce by 0037 GMT, after hitting an early low of USD 1,259.51, its weakest since April 28. Bullion fell 1.9 percent on Monday, its sharpest single-day drop since March 23.
Silver also turned weak and dropped by Rs 350 to Rs 41,200 per kg on reduced offtake by industrial units and coin makers.
Gold for delivery in June was trading lower by Rs 242, or 1.13 percent, to Rs 30,036 per 10 gram at the Multi Commodity Exchange in a business turnover of 5,361 lots.