Rangebound trades

MARKET REVIEW: DOMESTIC / BULLION

The precious metals trade remain ed range bound during the last week.

The prices of silver, especially saw a dramatic fall mid-week both in the international and domestic markets which triggered further short selling.

The prices however slowly rallied around towards the end of the week, to close at around the same levels as last week.

The December futures contract on the Comex in New York traded lower and went below the $400 mark before the September 11 anniversary, but later closed the week slightly higher.

The London gold fix dipped from the previous week as well, to close at $401.35 (PM). In the domestic market, during the week ended September 11, spot gold (99.50 purity) in Mumbai closed lower from last week's close of Rs 6150 at Rs 6145 per 10 gram.

Spot gold (99.90 purity) closed at the same level as last week at Rs 6185. The price opened bearish last Monday before rising again.

Spot silver (.999) further eased from last week's close of Rs 10795 to end at Rs 10350 per kg.

The futures market saw a dramatic pick up in volumes and open interest though the prices remained depressed. On the National Commodity Derivatives Exchange (NCDEX), the September gold contract ended on Friday at Rs 6106.75 from Rs 6155.15 last week. Traded volume was 56400 gram. Open interest stood at 392100 gram.

The October contract decreased to Rs 6110 from Rs 6118, with open positions worth 191300 gram and a volume of contract of 27900 gram.

The November contract closed higher at Rs 6103 compared with last week's close of Rs 6120, with an open interest and volume of 48800 gram and 5300 gram respectively.

The pure gold (kilo) September contract ended at Rs 6125 from Rs 6150 last week, with an open interest of 12 kg.

The October contract closed at Rs 6080, from the previous week of Rs 6146, amid an open interest of 4 kg.

NCDEX September silver futures closed at Rs 10039 with an open interest of 66415 kg. The price rose from last week's Rs 10645.60.

The October contract closed at Rs 10060 compared with Rs 10638 last week. The open interest closed at 48490 kg while the volume of contract stood at 4920.

The November silver contract closed at Rs 10068 compared with Rs 10623 last week, with an open interest of 8705 and volume of 1030.

On the Multi Commodity Exchange of India (MCX) the October gold contract fell from Rs 6146 on Monday to Rs 6084, amid an open interest of 1897 kg and a volume of contract of 1738 kg.

The September silver contract closed higher at Rs 10130 from Rs 10658 last week. The open positions stood at 330 kg.

The December 3 silver contract closed higher again at Rs 9974 on Friday from Rs 10604 last week. The open positions stood at 144900 kg and the volume of contract was 95340 kg.