Gold plunges below Rs 29,000k mark on heavy selling

Mumbai, May 19 : Gold prices plunged and closed below the psychologically-significant Rs 29,000 per 10 grams mark at the local bullion market today on consistent selling by stockists and speculators despite firm global sentiment.

On the other hand, silver regained some lost ground on emergence of buying from jewellery and coin makers coupled with renewed industrial off-take.

Standard gold (99.5 purity) dropped by Rs 230 to conclude at Rs 28,790 per 10 grams from last Saturday’s closing level of Rs 29,020.

Pure gold (99.9 purity) also slumped by Rs 240 to end at Rs 28,930 per 10 grams from Rs 29,170.

Silver (.999 fineness), however rose by Rs 100 to finish at Rs 41,920 per kg over its last weekend level of Rs 41,820.

Meanwhile, globally the shiny metal reclaimed the key USD 1,300 an ounce level on weak dollar as well as sliding equity markets.

Spot gold was bid higher at USD 1,301 an ounce in early European trade.