The annual wholesale price index-based inflation rose 4.75% during the week ending October 29, higher than the previous weeks 4.49%. The surge in the year-on-year inflation rate was largely on account of an increase in prices of vegetables, pulses and some manufactured products according to the latest data released by the Ministry of Commerce and Industry. The wholesale price index stood at 198.3 points during the latest reported week, against 189.3 points a year ago. This has resulted in the rupee getting weaker and the bullion gaining an upper hand. Gold that has been capitalising on the strong fundamentals kept its record intact as the best tool against inflation was on its way up to the top setting heights that are unheard of. Elsewhere in the international market too, gold kept its glitter to dizzying heights not only in the futures market but also in the spot market. Making the most out of golds heights were silver and copper, both of which posted life-time highs.
The markets were taken by the bullion storm as the performance of the other commodities were dwarfed and was only good for second page. Pulses, the major stake-holder of the market continues to hold firm and was good in turning in the volumes but couldnt do much with regard to the prices that remained almost firm.
Courtesy: Geojit Commodities Ltd