Bull run

MARKET REVIEW/ DOMESTIC - BULLION

The domestic bullion market ended the week on a bullish note taking its cue from global markets. With the dollar weakening against the euro, gold saw a sharp rise in European markets as well.

In New York, gold reached a three-month high and closed at $407.65 per troy ounce, and silver closed at $6.45 on Friday.

Positive job data in the US, higher interest rates and rising oil prices were expected to lead to continued buying in New York, said analysts. This will result in the gold prices further appreciating in the spot market globally over the next week.

The domestic demand during the past week also accelerated, with spot gold (99.50 purity) in Mumbai closing at Rs 6095 from last week's close of Rs 6025 per 10 gram. Spot gold (99.90 purity) rose to Rs 6125 from Rs 6060.

Spot silver (.999) crossed the Rs 10,000 mark to close at Rs 10,190 on Friday, but opened bearish on Saturday at Rs 10,160. It closed at Rs 10,165 from last week's Rs 9670 per kilogram.

On the futures market, volumes rose. On the National Commodity Derivatives Exchange (NCDEX), the July contract rose to Rs 6012.10 from previous week's close of Rs 5891.95 amid an open position of 468200 gram. Volumes rose to 72600 gram.

August gold contract closed at Rs 6001.45 from 5901.40, and September contract closed at Rs 5996.95 from Rs 5904.55, with a volume of 17000 gram.

The volumes of NCDEX July silver futures volumes rose to 9410 kg from 2155 kg while open interest stood at 23625 kg. The price rose to Rs 9910.80.

August silver futures volumes was at 6815 kg while open interest increased to 15925 kg. The price increased to Rs 9906.30 from Rs 9329.25.

The September silver futures closed at Rs 9902.20 from Rs 9333.75, amid an open interest of 3920 kg and a volume of contract of 1070 kg.

The August gold contract on the Multi Commodity Exchange (MCX) rose to Rs 6059.00 as against previous week's close of Rs 5962.00. The volume of contracts closed at 1986 kg, and open interest moved to 1554 kg.

The October contract rose to Rs 6049 from Rs 5950 last week with an open interest of 155 kg and a volume of 84 kg traded.

August mini-gold closed at Rs 6045 from Rs 5952, with an open interest of 78 kg and a volume of 35 kg.

The July silver contract closed up at Rs 9500 compared to the previous week's close of Rs 9346.00. The open interest stood at 90 kg.

The September silver contract closed higher at Rs 10,020 on Friday from Rs 9373.00 last week. The open positions stood at 53040 kg and the volume of contract was 87840 kg.

The July contract for mini-silver closed at Rs 9464 from Rs 9382 last week. The open interest closed at 5 kg.

The September mini-silver contract closed at Rs 9998 compared to Rs 9382 the previous week. The open interest stood at 985 kg with a volume of 1620 kg.