Upward trend in line with global markets

MARKET REVIEW: DOMESTIC / BULLION

The domestic bullion market experienced a steady upward trend in line with international markets even as the dollar fell against the euro.

The December futures contract on the Comex in New York traded at $415.70 on Friday. The London gold fix was higher at $410.55 (PM).

In the domestic market, for the week ended July 31, spot gold (99.50 purity) in Mumbai closed higher from last week's close of Rs 6025.00 at Rs 6280 per 10 gram.

Spot gold (99.90 purity) rose from Rs 6055.00 to Rs 6315. Analysts believe that on a fundamental basis the yellow metal is likely to maintain its strong position.

Spot silver (.999) continued its sharp rise to close at Rs 11105.00 from last week's Rs 10665.00 per kilogram.

The futures market witnessed active trading in bullion products as well. On the National Commodity Derivatives Exchange (NCDEX), the August gold contract ended bullish on Friday at Rs 6181.00 from Rs 6032 last week. The volumes were 130900 gram. Open interest stood at 118000 gram.

The September contract rose to Rs 6115.95 from Rs 5995.70, with open positions worth 115700 gram and a volume of contract of 5000 gram.

The October contract closed higher at Rs 6107.00 compared with last week's close of Rs 6030, with an open interest and volume of 62200 gram and 19800 gram respectively.

The pure gold (kilo) August contract ended on the delivery date at Rs 6174.00 from Rs 6025 last week, with an open interest of 16 kg and a volume of 20 kg.

The October contract closed at Rs 6121.00, from the previous week of Rs 5998.00, amid an open interest of 4 kg, and a volume of 43 kg. NCDEX August silver futures closed at Rs 10792.25 with an open interest of 14245. The price rose from last week's Rs 10379.55.

The September contract closed at Rs 10635.25 compared with Rs 10303.85 last week. The open interest closed at 33450 kilogram while the volume of contract stood at 16380. The October silver contract closed at Rs 10612.00 compared with Rs 10336.00 last week, with an open interest of an open interest and volume of 4615 and 1665 respectively.

On the Multi Commodity Exchange of India (MCX) the October gold contract rose from Rs 5997.00 to Rs 6119.00, amid an open interest of 1878 kg and a volume of contract of 1998 kg.

The December 5 contract had an open interest of 110 kg and a volume of 46 kg traded. The price however fell to Rs 6033.00 from Rs 6120.00. The September silver contract closed higher at Rs 10648.00 on Friday from Rs 10376.00 last week.

The open positions stood at 83160 kg and the volume of contract was 76320 kg. The December 3 silver contract closed higher at Rs 10639.00 on Friday from Rs 10284.00 last week. The open positions stood at 7650 kg and the volume of contract was 4980 kg.