Chaotic moves continue

Updated: Nov 19 2005, 07:01am hrs
The commodity markets saw another volatile session Friday as the tug of war between the bulls and bearscontinued throughout the day. Again bullions were the center point of attraction which were shining more brighter in the Asian session. Later profit taking coupled with bargain hunting kept the bullions swinging in a two-way fashion. Smart spices like pepper, jeera and turmeric remained firm. After continuous struggles pulses like chana and urad ended in red. The overall psychology of the market was mixed with cautious trading interest. Activity continued to rise which urad, chana, and guarseed leading the way.

Market watch

Breaching all the barriers gold prices soared at the local bullion market on Thursday to touch a new record of Rs 7,250 per 10 gm, surpassing the previous records. Futures markets reflected the same with strong activity.

Steep rise in the international prices and heavy buying by stockists and jewellers ahead of the wedding season were the major reasons behind the steep rally in gold and silver prices. A decision by the Russian Central Bank to double its gold reserves and seek an additional 500 tonnes coupled with strong funding buying from the speculators attributed this rise.

Domestic rubber markets showed marginal weakness by taking cues from leading markets like TOCOM, SICOM and Shanghai Futures Exchange. Speculative selling, increase in Japanese stockpiles, favourable weather conditions and soft crude prices are the primary reasons for decline in prices according to experts.

Courtesy: Geojit Commodities Ltd