Gold price cracks below Rs 29,000-mark on investors selling

Mumbai: Gold prices drifted further to close below the significant milestone mark of Rs 29,000 as intense selling continued for a second straight day at the domestic bullion market here Thursday.

Strong rupee value as well as profit taking by jewellery traders and investors after its recent swift rally largely impacted trading sentiment, a bullion trader said.

Elsewhere, silver also moved down owing to subdued demand from consuming industries.

Standard gold (99.5 purity) slipped by Rs 255 to conclude at Rs 28,945 per 10 grams from overnight closing value of Rs 29,200. Pure gold (99.9 purity) also fell by a similar margin to end at Rs 29,095 per 10 grams as compared to Rs 29,350 earlier.

Silver (.999 fineness) moved down by Rs 150 per kg to settle at Rs 37,350 from Wednesday's finish of Rs 37,500.

In worldwide trade, gold weakened for the third straight session and traded within a narrow range amid caution ahead of the ECB rate decision.

Investors are expecting the European Central Bank to unveil further easing measures through adjustments to the quantitative easing program to avoid another recession.

Spot was trading weak at USD 1,249.10 an ounce in early European trade, while silver quoted little changed at USD 15.26 an ounce.