Bullion burns bright; oils firm

Our Commodities Bureau

BULLION: Gold prices flared up on the bullion market here on Thursday on persistent heavy demand from stockists and in reflection to a higher price trend in the overseas markets. Silver, however, recovered on renewed demand.

The yellow metal shot up on hectic stockists’ demand. Sharply higher global market advices also aided the uptrend.

In the international markets, gold was quoted at $272.65/90 an ounce at the London opening and in early Hongkong trade was quoted at $272.10 an ounce from $268.90 and $271.20/70 respectively. Dealers attributed the steep rise in gold prices to Tuesday’s 50 basis points reduction in the United States Federal Reserve interest rate to four per cent, its lowest level in seven years.

Standard gold rose by Rs 50 to Rs 4425 from the overnight closing level of Rs 4375. 22-carat gold also shot up by Rs 55 to Rs 4095 from Rs 4040.

OIL&OILSEEDS: Groundnut oil continued to rule firm on the oils and oilseeds market here today. Groundnut oil shot up further on persistent demand from consumers. Restricted supply also affected the sentiment.
In the edible oils section, groundnut oil advanced further by Rs 10 to Rs 360 from Rs 350 previously. Imported RBD palmolein, however, ruled steady at Rs 227.

Turning to the industrial section, castor oil commercial edged up to Rs 235 from Rs 234 on mild demand from soap industries. Castroseeds bold Madras also edged up to Rs 1025 from Rs 1020. Linseed oil, however, ruled unchanged at Rs 285.

Moving to the futures section, castor seeds June contract was quoted higher at Rs 1070 as against Rs 1055 yesterday on good export enquiries, disclosing a gain of Rs 15. September contract shot up by Rs 23 to close at Rs 1145 as against Rs 1122 previously.

In castor oil international, prices of June delivery contract was quoted at the same yesterday’s level at Rs 259 .