Gold prices dipped below the 29k mark to a three-week low of Rs. 28,840 per 10 gm, down by Rs. 475, in the national capital on Wednesday on continued selling by stockists sparked by a weakening global trend amid drying up demand.
Silver also dropped by Rs. 700 to Rs. 54,300 per kg on reduced offtake by industrial units and jewellery makers.
Trading sentiment remained bearish after gold and silver slumped to the lowest levels in four months in global markets as Greek leaders struggled to form a government, increasing concern deepening euro zone crisis and boosting the dollar.
The dollar-priced gold in global markets, which normally set price trend on the domestic front here, fell 1.1 per cent to $1,587.28 an ounce, the lowest since January 3 and silver by 1.8 per cent to $28.92 an ounce, the cheapest since January 9.
In addition, domestic demand dried up due to off-marriage season and retailers refrained from buying at such costly levels further dampened the sentiment.
On the domestic front, gold of 99.9 and 99.5 per cent purity suffered a setback of Rs. 475 each to Rs. 28,840 and Rs. 28,700 per 10 gm. The metal has plunged Rs. 435 in last three sessions. Sovereign followed suit and declined by Rs. 50 to Rs. 23,700 per piece of eight gram.
Similarly, silver ready nosedived by Rs. 700 to Rs. 54,300 per kg and weekly-based delivery by Rs. 625 to Rs. 54,680 per kg, in continuation to a fall of Rs. 1,250 in two days.
However, silver coins held steady at Rs. 63,000 for buying and Rs. 64,000 for selling of 100 pieces.