Gold declines on frantic sell-off, hits multi-month low

Gold prices crashed to hit 11-months low and closed below the Rs 29,000 per 10 gram mark at the domestic bullion hub today on emergence of hectic off-loading by stockists and speculators.

Silver, too, slumped on aggressive speculative sell-off coupled with subdued industrial off-take.

Standard gold of 99.5 per cent purity plunged by a hefty Rs 500 to finish at Rs 28,890 per 10 grams from Wednesday's closing level of Rs 29,390.

Pure gold of 99.9 per cent purity also tanked by a similar margin to close at Rs 29,025 per 10 grams from Rs 29,525.

Silver ready (.999 fineness) fell sharply by Rs 565 to conclude at Rs 52,495 per kg from Rs 53,060 previously.

Trading sentiments in India were hit by the precious metal's sharp correction in overseas markets in the last two days, traders said.

Yesterday's holiday in the bullion market restricted speculators from off-loading their long positions, they said.

On the global front, the yellow metal came under heavy selling pressure from exchange-traded fund following upbeat jobless claims data in Europe amid speculation that Cyprus may sell excess amount of gold to tide over its financial crisis.

Spot gold was sharply lower at $1,548.50 an ounce in early European trade and spot silver was bid weak at USD 27.40 an ounce.