Both precious metals recorded a rise over the last week in the Mumbai bullion market .Gold, however, gained moderately while silver shot up, crossing the Rs 6,400 mark. Gold moved beyond Rs 4,500 mark but was stagnant at higher levels following raids by the income -tax department The sentiment , however, followed the price trend abroad. Both the precious metals were in demand at higher levels in New York than in London which had to follow suit. Prices abroad have been recovering, with gold touching $329 per ounce level.
Silver neared the $3.49 per ounce level. According to upcountry reports unless gold crosses $330 per ounce level the trend would remain bearish and in silver the level of 4.50 per ounce.
Still overseas traders were not confident of prices crossing the these crucial levels and if it does the prices would drop.
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At least lower levels would have been easily left behind with new low levels. The investment buying has been at a low ebb, hence prospect of rise in prices has been ruled out. The inflow of contraband continued with the seizure of 35 kg gold at Sahar airport over the week Standard mint gold commenced at Rs 4,500 against the previous close of Rs 4,495 and in limited activity due to raids, values rose to a high of Rs 4,520 to end at Rs 4,520 per 10 grams. Gold 22 carat fluctuated between Rs 4,180 and Rs 4,160 .
Official biscuits of 10-tolas, were up Rs 300 at 52,900.
Ready silver .999 fineness commenced Rs 6,300 against the previous close of Rs 6,325 and on higher overseas advices coupled with moderate festival demand crossed Rs 6,400 mark at Rs 6,450 to end at Rs 6,440 per kg .
Silver .916 fineness fluctuated between Rs 6,230 and Rs 6,350. Tenderable silver gained Rs 115 at Rs 6,445 per kg.
Oilseeds weekly: A firm to quite tendency in castorseed futures was the main feature of trading on the Mumbai oilseeds market last week. In view of the lean months the inflow of castorseed in Gujarat has been lower. Hyderabad castorseed prices had ruled above Rs 1,200 per quintal mark
Consequently, bulls were in command at the Ahmedabad market hence despite profit-taking, they were able to keep prices firm. However, in the absence of demand for castoroil on the export front, spot prices lacked strength at higher levels and ruled a shade lower. In edible oils Rajkot advices were quiet. In fact most of the supplies here had been from the south. Reports of groundnut crop in Saurashtra are encouraging. With more arrivals of palmoleine, prices ruled steady after early rise last week.
The demand for groundnut oil has been limited due to high prices. Castorseed September commenced at Rs 1,181, against the previous close of Rs 1,173 and in early deals touched a high of Rs 1,184 on Tuesday and on profit-taking by bulls, on lower Ahmedabad advice, the contract slipped back to a low of Rs 4,151 to close at Rs 1,152 .
Export demand has been below normal and with the start of Brazil new castorseed crop in market the possibility of Indian castor oil demand would drop.
Under the circumstances the higher rates in the spot section attracted more supplies.
In edible oils, groundnut oil, too, lacked good demand, at least at higher levels. Rajkot advices were quiet and hence groundnut oil receded from the opening high of Rs 376 to Rs 364 at week-end. In view of the liberal imported oil supplies which were sold cheaper , the demand for groundnut oil had been on the decline.
More imported plamoleine supplies have been cleared on the Mumbai port hence palmoleine ruled easy from Rs 262 to Rs 257 per 10 kg despite festival demand and limited supplies of groundnut, oil prices have been ruling stable mainly due to heavy imports under Open General Licensing system.
Grains weekly: Barring new moong crop arrivals, there was little change in the turnover on the Mumbai grains market last week. Activity was at a very low ebb and prices ruled barely steady with inferior Punjab wheat declining while superior varieties traded at steady levels. There was little change in either the demand or prices in cereals and pulses.
The sentiment in moong and urad would be affected on fresh supplies and prices at the producing centres. Wheat Punjab moist ruled at Rs 620-625 per quintal. In view of susceptability to infection, traders were keen on disposing offf the same at even lower prices.
On the other hand, superior varieties led steady with Ganganagar offered ta Rs 650-675 and MP-147 at Rs 650-750 per quintal.
Shihori Pissi was offered between Rs 700 and Rs 1,000 per quintal. The demand was at a very low ebb. Reports from Jalna, Aurangabad and Nagpur spoke of acute shortage of rains.
Consequently, jowar, moong and urad crop were below normal and the shortage would continue, necessitating imports to curb the rising rates of the same.
At present, the sentiment is easy as new crop supplies have already started at the producing centres.
Prices of rice ruled steady. New crop prospects are bright, but the supplies would start only in October. Due to lean months, the inflow was limited and so also the demand. SLO new ruled at Rs 850-900 and old at Rs 900-1,000. Gujarat-17 was offered at Rs 1,600-1,700 and Kolam at Rs 1,700-2,100. Basmati was traded at steady levels of Rs 3,800-4,300.
Among pulses, gram deshi ruled at Rs 1,320-1,350 and dal at Rs 1,500-1,600. New crop polished moong fetched Rs 2,000-2,500 and old at Rs 1,400-1,500. Urad fetched Rs 981-1,050 and urad dal at Rs 1,450-1,600. The demand was at a low ebb as crop arrivals would start in September. Peas white ruled steady at Rs 1,375-1,400.
Tur fetched Rs 1,050-1,150 and tur dal at Rs 1,900-2,100. In view of poor demand and delayed outstanding payments, financial position in the market remained tight.