Both the precious metals nose-dived on the Mumbai bullion market last week. At the beginning values receded but on good festival demand recovery was noticed.
However, on the last day of the week, heavy fall in overseas had adversely affected the sentiment and values dropped.
Overseas prices had retreated sharply on the last day of the week, following revelation that the Switzerland bank would sell gold.
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Gold prices collapsed to $309 on bearish sentiment. Silver, too, suffered a sharp set-back in overseas declining, once again below $5 per ounce.
In view of festival season the demand for gold had been fairly good resulting in stable prices till week-end when a sudden collapse followed.
Standard mint gold commenced last week at Rs 4,380 , against the previous close of Rs 4,390 per 10 gms and on selling pressure ,following quiet overseas advices, declined gradually to end the week at the low of Rs 4,270.
Despite the festival demand, values dropped. Gold biscuits dropped to the low of Rs 50,000, against the previous week-end close of Rs 52,600.
Ready silver .999 fineness after declining to the low of Rs 6,020 recovered on good seasonal demand to rise to Rs 7,060 but on the last day crashed to the low of Rs 6,805 to end at Rs 6,810 per kg.
Oilseed weekly: After the start of the castorseed distant March 1998 contract, castorseed futures drifted to close with on-balance losses on the Mumbai oilseeds market last week.
Spot prices in Gujarat and Hyderabad were ruling above Rs 1,200 per quintal, higher than the rates in the December contract. Trading activity here was mostly followed by the price changes at Ahmedabad.
In edible oils recent recovery in groundnut oil was short-lived and prices ruled easy.
Rajkot advices were weak and hence prices dropped in the city from the high of Rs 357 at the end of the previous week to Rs 347 per 210 kg. In view of the weaker Malaysian palm oil advices, palmoleine also was down from Rs 268 to Rs 264. Castorseed December contract commenced last week at Rs 1,169, against the previous close of Rs 1,169.50 and in early trading on higher Ahmedabad advices went up to touch the high of Rs 1,175 but with the start of the distant contract, on bull unloading it dropped to the low of Rs 1,155.50 to end at Rs 1,157 per quintal.
The March delivery commenced at par at Rs 1,174 and drifted to end at the low of Rs 1,127. Ready castorseed Madras small was offered at Rs 1,190 and castor oil at Rs 268 per 10 kg.
Grains weekly: Listless condition marked trading on the Mumbai grains market last week. Prices ruled steady for wheat and rice. In coarse grains, the inflow of both new crop jowar and bajra had been on the rise.
Among pulses, gram ruled easy on weaker advices from producing centres while moong and urad were steady.
Wheat Punjab moist inferior ruled steady at Rs 580-600 per quintal. Ganganagar better quality was demanded at Rs 700-750 and M.P.-147 at Rs 675-725. Shihori pissi was in demand at Rs 800-1,200.
Prices ruled steady for rice Andhra Pradesh SLO was in demand at Rs 875-1,000 and Gujarat-17 at Rs 1,600-1,700. Kolam was in demand between Rs 1,700 and Rs 2,200. Basmati was demanded at Rs 3,800-4,300.
In coarse grains, jowar Sholapur old was steady at Rs 600-800 while new crop H-5 was offered at Rs 400-450 and H-9 at Rs 525-550. Bajra Maharashtra, according to quality, was traded between Rs 450 and Rs 650.
Maize was traded steady at Rs 400 and Rs 575.
Among pulses, gram deshi receded by Rs 25 at Rs 1,375-1,500 and kabli at Rs 1,350-1,600. Moong unpolished fetched Rs 1,600-1,800 and polished at Rs 1,800-2,100.
Gram dal ruled at Rs 1,700-2.000 and moong dal at Rs 1,900-2,200 per quintal.