Gold declines to hit multi-month low of Rs 28,350

Mumbai: Gold prices witnessed their steepest fall ever at Rs 1,250 per 10 grams to Rs 28,350 per 10 grams on emergence of hectic off-loading by stockists and speculators. Silver, too, slumped on aggressive speculative sell-off coupled with subdued industrial off-take.

Trading sentiments in India were hit by the precious metal's sharp correction in overseas markets in the last three days. Thursday's holiday in the bullion market restricted speculators from off-loading their long positions.

On the global front, the yellow metal came under heavy selling pressure from exchange-traded fund following upbeat jobless claims data in Europe amid speculation that Cyprus may sell excess amount of gold to tide over its financial crisis.