Gold dips below Rs 29k-mark on weak global cues, low demand

Gold prices drifted to close below the significant milestone of Rs 29,000-mark by falling Rs 310 to trade over 1-1/2 month low at the bullion market in Mumbai Friday, tracking a weakening global trend amid slackened demand from jewellers.

Elsewhere, silver also moved down owing to reduced demand from consuming industries.

Standard gold (99.5 purity) dropped by Rs 310 to end at Rs 28,755 per 10 grams from Thursday's close of Rs 29,065.

The rate was not seen since April 08, 2016.

Pure gold (99.9 purity) also shed by a similar margin to finish at Rs 28,905 per 10 grams as against Rs 29,215.

Silver (.999 fineness) also dipped by Rs 460 per kg to conclude at Rs 39,355 from Rs 39,815 yesterday.

Globally, gold steadied off an eight-week low, but remained on track for a fourth straight weekly drop as growing speculation that the Federal Reserve will press ahead with interest rate hikes hurt investor demand.

Spot gold was at $1,219.64 an ounce in early trade, little changed from late on Thursday but off an earlier low of $1,211.30. US Gold futures for June delivery were down 60 cents an ounce at $1,219.90.

Silver touched its lowest in nearly six weeks at $16.12, and was later flat at $ 16.30 an ounce.