Gold prices fell back after a brief overnight rally due to slackened demand from jewellery stockists as well as modest profit-taking by investors spooked by sluggish overseas sentiment.
Silver, too dropped sharply owing to heavy speculative unwinding coupled with lack of industrial buying support.
Standard gold (99.5 purity) slumped by Rs 195 to finish at Rs 28,155 per 10 grams from Tuesday's closing level of Rs 28,350.
Pure gold (99.9 purity) also shed by a similar margin to end at Rs 28,305 per 10 grams against Rs 28,500 previously.
Silver (.999 fineness) tanked by Rs 490 per kg to conclude at Rs 45,020 per kg as compared to Rs 45,510 yesterday.
Globally, the shiny metal retreated from two-month high on investors' selling and strong dollar amid caution ahead of US economic data outcomes including GDP growth numbers later in the day.
Spot gold was bid lower at USD 1,314.29 an ounce in early European trade.