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 today 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 USD 1,587.28 an ounce, the lowest since January 3 and silver by 1.8 per cent to USD 28.92 an ounce, the cheapest since January 9.
In addition, domestic demand dried up due to off-marriage