Gold recovers; oil market mixed

Mumbai, May 7

BULLION: Gold prices showed a moderate recovery on the bullion market here on Monday on account of renewed buying interest followed by better upcountry advices.

Silver, however, eased further owing to poor industrial offtake coupled with weak overseas advices. Standard gold, after a weak start at Rs 4320, found fresh demand at lower level and recovered to close at Rs 4340, showing a moderate gain of Rs 10 over the previous close of Rs 4330. 22-carat gold was nominally quoted better at Rs 4015 as against the last close of Rs 4005.

Ten-tola gold bar (.999 purity) opened on a steady note at Rs 50,750 and later recovered to close at Rs 50,800, showing a gain of Rs 50 over the last close of Rs 50,750.

In the global market, gold fell from $266.20 to $266.10 per troy ounce. Silver prices slide from $4.36 to $4.35 per troy ounce while prices in the local market remain under pressure amidst fresh inflow of 350/400 kg of raw silver from local sources.

OIL,OILSEEDS : A smart rally was witnessed in the prices of imported RBD palmolein on the oils and oilseeds market here on Monday.

Groundnut oil dropped sharply in the absence of poor offtake, while non-edible oils and their seeds moved in a narrow range and closed steady.

In the edible section, imported RBD palmolein shot up by Rs 5 to close at Rs 241 from the last close of Rs 236 owing to thin supply following government’s decision to restrict import through six ports, according to market sources. On the other hand, groundnut oil, which was showing steep rise since last Monday, turn weak due to poor demand at higher level and declined sharply by Rs 5 to close at Rs 355 as against the previous close of Rs 360.

However, prices of castor oil commercial, castorseed bold Madras and linseed oil, in the non-edible section, held steady at the last weekend level of Rs 242, Rs 1060 and Rs 290 respectively due to the restricted activity. Moving to the futures market, castorseed June delivery opened weak at Rs 1115 and declined further due to poor stockists demand and closed at Rs 1114, showing a fall of Rs 7 over the last close of Rs 1121.