New Delhi, Dec 14: Gold dipped below the psychological Rs 29,000-level in the bullion market here today on sustained selling by stockists in tandem with a steep fall in precious metals in global markets.

Gold prices declined by Rs 100 to Rs 28,940 per 10 grams, while silver lost Rs 200 to Rs 55,800 per kg on reduced offtake by industrial units and jewellers.

Traders said selling in gold gathered momentum after it slumped to a seven-week low in global markets, as the dollar's rally eroded demand for the precious metal as an alternative investment.

Gold plunged by USD 34.40 to USD 1,630.90 an ounce, while silver lost 1.44 per cent to USD 30.84 dollar an ounce in New York last night.

In addition, retail customer's refrained from purchasing the precious metals at existing higher levels, which further dampened the sentiment.

Back home, gold of 99.9 and 99.5 per cent lost Rs 100 each to Rs 28,940 and Rs 28,800 per 10 grams, respectively. The metal has lost Rs 290 in last two days.

Sovereign held steady at Rs 23,300 per piece of eight grams.

Likewise, silver ready declined by Rs 200 to Rs 55,800 per kg and weekly-based delivery shed Rs 5 to Rs 56,415 per kg.

Silver coins dropped by Rs 1,000 to Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.

PTI