Gold dips below Rs 29,000 on weak global cues, low demand

Gold prices cracked the Rs 29,000 mark to a six-week low of Rs 28,880 per 10 gram at the bullion market today amid weak trend overseas and easing demand from local jewellers.
Extending the falling streak to the fourth day, gold declined by another Rs 270 per 10 gram.
Silver too remained under selling pressure and slipped below the Rs 39,000-mark by losing another Rs 650 to Rs 38,850 per kg due to poor offtake by industrial units and coin makers.
Traders said the sentiment remained bearish in tune with the weak trend overseas where gold fell as the US dollar gained against major currencies, reducing the appeal of the precious metals as a safe haven after the US Federal Reserve kept interest rates unchanged as expected.

Globally, gold fell 0.28 per cent to USD 1,234.20 an ounce in Singapore. Silver too shed 0.03 per cent to USD 16.45 an ounce.
Besides, fading demand from local jewellers as well as retailers at domestic spot market, too put pressure, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 270 each to Rs 28,880 and Rs 28,730 per 10 gram, a level last seen on March 17 when it settled at Rs 28,950. Gold had lost Rs 400 in last three days.
Sovereign also declined by Rs 100 to Rs 24,300 per piece of eight gram.

Following gold, silver ready dropped further by Rs 650 to Rs 38,850 and weekly-based delivery slipped below the Rs 38,000-mark by falling Rs 800 to Rs 37,950 per kg.
Silver coins too traded lower by Rs 1,000 at Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces.