Prices of both silver and gold zoomed up on the Mumbai bullion market during the week on thin supply due to higher overseas advices resulting in acute shortage of ready stocks which pushed up the prices remarkably.
Ready silver of .999 fineness opened better at 8,610 and rallied to close at Rs 8,870, showing a remarkable rally of Rs 280 over the last weeks close of Rs 8,590. Similarly, raw silver of .916 fineness, after a better start at Rs 8,490 rose further to end at Rs 8,740, revealing a good gain of Rs 270 over the previous close of Rs 8,470. Tenderable silver shot up by Rs 280 to Rs 8,875 from Rs 8,595.
Standard gold resumed higher at Rs 4,070, but fell to Rs 4,045 by Tuesday due to fresh arrivals. Later, on lack of supply, it recovered to close at Rs 4,160, disclosing a smart rally of Rs 110 from the last weeks close of Rs 4,050.
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22-carat gold was nominally quoted higher at Rs 3,850 as against the previous weeks close of Rs 3,750. 10-tola gold bar of .999 purity closed Rs 1,100 higher at Rs 48,700 from the last weeks mark of Rs 47,600.
As the marriage season goes into full swing from late April, demand will rise over the next two months, a bullion dealer said.
India is the worlds largest consumer of gold, with annual demand estimated at 500 tonne.
Sugar: Rising expectations of a tax on sugar imports and improved sentiment for gold will force these two Indian commodities in the spotlight this week, traders said on Sunday.
Increasing sugar imports have hit the countrys sugar industry, leading to lower prices.
The industry is hopeful that the central government will soon impose a 5-10 percent tax on sugar imports, said Shantilal Dedhiya, secretary of the Bombay Sugar Merchants Association.
Last week, a senior food ministry official said India planned to impose a five per cent tax on sugar imports to stem the inflow of cheaper foreign sugar.
Certainly, there will be some duty because international sugar prices are crashing, the official, who asked not to be identified, said. It will not be a zero-duty item.
India, with the exception of the western state of Maharashtra, currently allows duty-free imports of sugar. Last month, Maharashtra introduced a four percent levy on imported sugar.
Oil & oilseeds: Groundnut oil prices displayed good gains over the previous weeks level on the oilseeds market during the week under review due to poor arrivals coupled with higher Rajkot advices. Elsewhere, castorseed June contract and linseed oil also rose sharply on brisk exporters and paint industries demand, respectively.
Groundnut oil opened weak at Rs 393 and recovered to cross the Rs 400-level and closed at Rs 407, showing a good gain of Rs 9 over the last weeks close of Rs 396. Groundnut bold held steady at Rs 1,970.
Palm oil, however, started firm at Rs 357, but soon declined to Rs 352 due to fresh arrivals.
Later, on better overseas advices prices recovered and closed at Rs 357, revealing a small gain of one rupee from Rs 356. In the non-edible section, linseed oil, after a steady start at Rs 360 fell to Rs 350. Thereafter, it rose to close at Rs 370, displaying a smart gain of Rs 10 over the last close of Rs 360. Linseed bold remained unchanged at Rs 1,300. Castor oil improved by Rs 3 to Rs 280 from Rs 277 and castorseed Madras rallied by Rs 14 to Rs 1,248 from Rs 1,234.
In the futures section, castorseed June contract opened weak at Rs 1,272.50 and later, recovered to close at Rs 1,292, showing a gain of Rs 9.50 over the last weeks mark of Rs 1,282.50.
Metals: In non-ferrous metals, traders expect increased market activity after last weeks price hikes by state-run producers.
Hindustan Zinc and Hindustan Copper raised their selling prices in the second half of last week.
Local producers normally revise prices on a monthly basis, factoring in international price movements and local demand and supply.
Zinc added Rs 150 to end at Rs 7,150 per quintal, while copper rose Rs 50 to Rs 11,750 per quintal.
The latest round of price hikes stirred up an otherwise tepid base metal market, traders said.