New Delhi: Gold prices dipped below the Rs 28,000-mark to trade at 11-month low at Rs 27,400 per ten gram at the bullion market during the week on sustained selling by stockists, tracking a weak trend in the global markets.
Silver also dropped on reduced offtake by industrial units and coin makers.
Traders said the persistent fall in gold prices was mostly in tune with a weak trend overseas as signs of easing tensions in Ukraine and positive US economic data backed the case for the Federal Reserve to keep on reducing monetary stimulus, curbed demand for the precious metal as a haven.
Gold in New York, which normally sets the price trend on the domestic front, dropped 3.6 percent at USD 1,246 an ounce, the most since September 13 and silver slumped 3.8 percent at USD 18.68 an ounce, the most since March 21 during the week.
Besides, sluggish demand from jewellery fabricators on the domestic front and slowing demand in China also influenced the sentiment, they said.
In Delhi, gold of 99.9 and 99.5 percent purity commenced with weakness at Rs 28,270 and Rs 28,070 per 10 grams and on day-to-day selling by stockists, it dropped to close at Rs 27,400 and Rs 27,200 per ten gram respectively, the lowest level since July, last year, showing a steep fall of Rs 920 each.
Sovereigns eased to Rs 24,600 against last week's close of Rs 24,800 per piece of 8 grams.
Silver ready ended down by Rs 1,150 to Rs 40,350 per kg and weekly-based delivery lost Rs 1,210 at Rs 39,590 per kg, while silver coins plunged by Rs 1,000 to Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.
First Published: Saturday, May 31, 2014, 19:09