Gold, silver on the decline

Updated: Jan 26 2002, 05:30am hrs
Bullion: GOLD and silver prices ruled weak on the bullion market here during last week, dealers said on Friday.

Gold standard fell by Rs 100 at Rs 4,660 per 10 gm. Prices of gold biscuit (116.50 gm) nosedived further from Rs 55,600 and went below Rs 55,000 level to close at Rs 54,550 per piece during the week. Seasonal buyers stayed away in the falling market on expectations of further slide in the prices while news of losses in the global market prompted hectic selling by stockists and local bankers here. Uptrend in dollar value against Indian rupee had failed to cheer up market sentiment on account of sluggish activity. In the global market, gold moved down from $285.50 to $279.30 per troy ounce during the week, it was learnt. Fresh inflow of contraband gold as well as silver, however, remain restricted during the week due to tightened security in the metro cities as well as at border ahead of republic day celebrations, one bullion broker said.

Meanwhile silver prices crashed further from Rs 7,775 to Rs 7,400 before placing at Rs 7,465 per kg during the week. Industrial and seasonal demand for silver remain at a low ebb while steady inflow of raw silver from local sources coupled with weak Delhi and overseas advices pulled down prices. Traders reported arrivals of 800/1000 kgs of imported silver from Ahmedabad to city market while daily inflow of raw silver from local sources were placed at 200/250 kg. In the global market, the white metal fell from $4.59 to $4.34 per troy ounce.

Oil, oilseeds: Groundnut oil bounced back from the lower level on the oil, oilseeds market here during last week. Castorseed and its oil also recovered some of the recent losses as emergence of fresh overseas enquiries following rally in dollar value which, in turn, prompted brisk covering by bears and shippers during the week. Groundnut oil went up from Rs 355 to Rs 370 before placing at Rs 367 per 10 kg on eased supplies from Gujarat. In Rajkot, it was lifted from Rs 515 to Rs 535 per 15 kg on speculative interest in the ready section due to availability of forward delivery at higher level.

Meanwhile here, imported palm oil eased from Rs 295 to Rs 289 per 10 kg on fresh inflow at local ports and news of setback in global prices. Palm oil prices in Malaysia reacted to $340 per tonne for ready delivery and $345/350 per tonne for long delivery it was learnt.

Castor oil shot up by Rs 3 at Rs 248/260 per 10 kg. Castorseeds ready were up by Rs 15 at Rs 1,090 per quintal in sympathy.

In the futures section, castorseed April delivery quoted firm at Rs 1,177 per quintal while volume in February delivery remain restricted ahead of delivery period, floor sources said.

In Ahmedabad, castorseed February delivery quoted at Rs 1,089 and April delivery at Rs 1,157.50 per quintal while spot prices of castorseed quoted firm at Rs 215/220 per 20 kg. Castor oil at Rs 237/238 per 10 kg in Gujarat, it was learnt.