Standard gold jumped up from Rs 4,365 to Rs 4,830 per 10 gm, but later on dropped to Rs 4,590. Gold .22 carat opened firm from Rs 4,040 to Rs 4,470, but later on slide to Rs 4,245 per 10 gm. Prices gold biscuit (116.50 gm.) spurted from Rs 51,300 to Rs 57,300 per piece and finally settled down lower at Rs 53,800 per piece.

Gold prices remained depressed upto September 1999 as global prices went down to 20-year's lowest level of $250/255 per an ounce. However, prices spurted in October 1999 following record rally in the world market following decision by European banks to limit sale and lending of gold for next 5 years, it was learnt. Global prices shot up from $250/255 to $335/340 (2 years peak) as cap on sale of European banks triggered brisk short covering in the internationalmarket. However, later on profit taking by gold miners and producers coupled with reduction in the lending rates from 9/10% to 1/2% pulled down global prices below $300-level to $290/295 per an ounce at the time of Diwali.

Reaction in the global prices after record rally earlier in October prompted sharp upsurge in the Indian gold prices as market again moved southward ahead of Diwali. Volatile price fluctuations in the yellow metal ahead of festival season kept seasonal demand for gold remained at a low ebb. But later on stability in the market attracted fresh buying interest upto Diwali festival, according to Dinesh Parekh, director of Bombay Bullion Association. Traders estimation of gold demand of 700 tonnes in India during the year and rural investors had opted for investment in the precious metals after prices initially plunged to 20-years lowest level in the international market, Parekh says.

Earlier in the year the Union government had hiked import duty on gold from Rs 250 per 10 gm to Rs 400which in turn had prompted resumption of supplies of contraband gold through smuggling in India. However, higher tax burden in the city had kept direct import of precious metals at a low ebb. But traders were receiving imported precious metals via Ahmedabad and Delhi markets, it was learnt.

Bank of England had sold 50 tonnes of gold from its reserves in the international market during the year and fresh auction is due in the month of November. According to Parekh, the scheduled auction may depress global gold prices considerably in November.

Meanwhile silver .999 went up from Rs 7,435 to Rs 8,195 per kg. Silver .916 also climbed from Rs 7,320 to Rs 8,075 per kg during the year. Festival and seasonal buying for silver remained at a low ebb during the year. But silver traders and brokers had witnessed brisk industrial demand for the white metal during the year.