Zee Media Bureau
Gold prices cracked below Rs 29,000-mark by falling Rs 355 Friday in line with a weak trend overseas amid sluggish demand from jewellers at Delhi bullion market.
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 dipped to its lowest in almost eight weeks today and was heading for its biggest weekly decline in nine, with positive economic data boosting expectations that US interest rates will rise in the next two months.
Bullion has been under pressure since the prospect of an imminent rate hike was indicated by US Federal Reserve meeting minutes released last week and has been consistently supported by key central bank officials. An increase in rates would raise the opportunity cost of holding gold.
An appreciating rupee against the dollar, which made imports of precious metals cheaper, weighed.
In the national capital, gold of 99.9 percent and 99.5 percent 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.
With Agency Inputs