Gold cracks below Rs 29k, hits over 3-month low on global cues

Gold prices today crashed Rs 355 to break below the Rs 29,000 mark at Rs 28,870 per 10 grams— an over 3-month low—in line with a weak trend overseas amid sluggish demand from jewellers at the domestic spot market. Silver also dropped Rs 530 to Rs 39,070 per kg due to poor off-take by industrial units and coin makers.

Bullion traders said besides a weak trend overseas due to anticipation of higher borrowing costs in the US, a fall in demand from jewellers and retailers pulled down both gold and silver prices. Globally, gold fell 0.13 per cent to USD 1,217.90 an ounce in Singapore.

An appreciating rupee against the dollar, which made imports of precious metals cheaper, weighed. In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged Rs 355 each to Rs 28,870 and Rs 28,720 per 10 grams, respectively.

The price of gold stood at Rs 28,850 on February 17. The precious metal had edged up Rs 25 in yesterday’s trade. Sovereign, however, held steady at Rs 23,000 per piece of 8 grams.

Following gold, silver ready fell Rs 530 to Rs 39,070 per kg and weekly-based delivery Rs 525 to Rs 39,020 per kg. Silver coins too plummeted Rs 1,000 to Rs 66,000 for buying and Rs 67,000 for selling of 100 pieces.