Gold nanoparticles of variable sizes have been prepared by reducing HAuC14 with trisodium citrate by Frens' method. It has been found that the gold particles under consideration produce well-ordered aggregates upon interaction with a biomolecule, glutathione in variable acidic pH condition and exhibit pronounced changes in their optical properties arising due to electromagnetic interaction in the close-packed assembly. The effect of nanoparticle size on the nature of aggregation as well as the variation in the optical response due to variable degree of interparticle coupling effects amongst the gold particles have been investigated. The optical properties of the gold aggregates have been accounted in the light of Maxwell-Gannett effective medium theory considering the changes in the filling factor in different aggregates produced by variable sizes of gold colloids. The aggregates have been characterized by UV-vis spectroscopy, FTIR, Raman, XRD and TEM studies. It has been observed that a new peak appearing at a longer wavelength intensifies and shifts further to the red from the original peak position depends on the particle size, concentration of glutathione and pH of the solution. On the basis of the first appearance of a clearly defined new peak at longer wavelength, a higher sensitivity of glutathione detection has been achieved with gold nanoparticles of larger dimension. (c) 2007 Elsevier Inc. All rights reserved.