Gold slips below 29,000 on weak global cues, tepid demand

Gold prices fell by Rs 280 to crack below the Rs 29,000 mark to Rs 28,970 per ten grams at the bullion market today, tracking a weak trend overseas amid subdued demand from jewellers at domestic spot market.

Silver followed suit and dropped by Rs 325 to Rs 37,100 per kg due to reduced offtake by industrial units and coin makers.

Marketmen said a weak trend overseas as Asian equities resumed their gains and chances of a US rate hike rose after a report on Friday showed a pick-up in inflation, mainly pulled down both gold and silver prices here.

Meanwhile, gold slid 1 percent to USD 1,214.83 an ounce in Singapore today.

Moreover, slowdown in buying by jewellers as well as retailers at prevailing levels, also weighed on the prices, they said.

In the national capital, gold of 99.9 and 99.5 percent purity plunged by Rs 280 each to Rs 28,970 and Rs 28,820 per ten grams, respectively. The precious metal had shed Rs 40 on Saturday.

Sovereign, also declined by Rs 100 to Rs 22,900 per piece of eight grams.

Tracking gold, silver ready drifted by Rs 325 to Rs 37,100 per kg and weekly-based delivery by Rs 395 to Rs 37,115.

On the other hand, silver coins held steady at Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.