Bullion ends weak; oilseeds slip

Our Commodities Bureau in Mumbai

BULLION: Gold and silver prices moved in both ways but finished on a weak note on the bullion market here during last week, dealers said.

Gold standard closed Rs 20 lower at Rs 4,480 per 10 gm. Prices of gold biscuit (116.50 gm.) placed Rs 50 lower at Rs 52,500 per piece during the week. Fresh physical buying slowed down amidst conclusion of the first round of Hindu festival season as traders reported slow volume of trading during the week. News of setback in the global market ahead of fresh auction of gold by Bank of England also prompted offerings by stockists and local bankers which in turn pumped in more supplies of gold in the local market, a bullion broker said. Contraband inflow however remained restricted, he added. In the global market gold prices at one stage dropped to $273 per troy ounce but later on recovered to $275.75 per troy ounce, it was learnt. Uptrend in dollar value against rupee in the local market had failed to cheer up bullion prices due to limited demand. Dollar prices shot up from Rs 47.12 to Rs 47.15 during the week. Meanwhile silver .999 closed Rs 5 lower at Rs 7,150 per kg amidst limited industrial buying. But traders reported steady demand for festival season. Daily arrivals of raw silver from local sources reported at 125/150 kg during the week while in the global market the white metal eased from $4.24 to $4.21 per troy ounce.

OIL, OILSEEDS: Bearish sentiment in groundnut oil prices continued on the oil, oilseeds market here during last week. Imported edible oils lead by palm oil also closed with widespread losses in absence of physical support followed by setback in the global prices on account of countdown of new crop arrivals in the domestic market.

Groundnut oil dropped by Rs 20 at Rs 350 per 10 kg. In Rajkot it was quoted lower at Rs 590 as against Rs 610 per 15 kg earlier as millers remained active sellers ahead of new crop supplies, it was learnt. Imported palm oil here crashed further from Rs 310 to Rs 293 per 10 kg while in the global market palm oil moved down from $325 to $307.50 per tonne. Forward prices were available at $310/312.50 per tonne, it was learnt.

Castor oil closed Rs 7 lower at Rs 274/286 per 10 kg following withdrawal of overseas buying. Castorseed ready were down to Rs.1,220 per quintal in sympathy.

In the futures section castorseed December delivery fell from Rs 1,367 to Rs 1,346 per quintal as weak Gujarat advices triggered fresh bull unloading, floor sources said.

In Ahmedabad September delivery placed at Rs 1,220 while December delivery closed at Rs 1,316.50 per quintal respectively.