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Gold Slides, Silver Better As Trading Resumes

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BSCAL
Last Updated : Dec 04 1997 | 12:00 AM IST

Gold prices fell by Rs 15 to Rs 4,005 per ten gram as trading resumed on the bullion market yesterday after a two-day bandh.

The bullion market had closed from December 1 to express solidarity with the traders agitation. However, silver prices rose sharply by Rs 85 to Rs 7,445 per kg on higher overseas advices.

Standard gold fell Rs 15 to settle at Rs 4,005 from the previous close of Rs 4,020 on weak London advices. Twenty-two-carat gold was nominally quoted lower at Rs 3,705 from Rs 3,720, while ten-tola gold bar of .999 purity lost Rs 100 and fell to Rs 46,900 as against the last close of Rs 47,000.

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Silver ready of .999 fineness strengthened by Rs 85 and ended at Rs 7,445 from Rs 7,360. Raw silver of .916 jumped Rs 90 to Rs 7,350 from Rs 7,260 while tenderable silver gained Rs 85 to Rs 7,450 from Rs 7,365. Meanwhile the Mumbai cotton market was closed for the third consecutive day yesterday as traders protested a five per cent service tax levied by the government.

"We had decided to observe a three-day strike beginning from Monday against service tax," a dealer said. Industry representatives are in talks with senior government officials over ways of ending the deadlock, he said.

Dealers said the undercurrent was firm on news of drop in the arrivals in north India, despite the suspension of trading.

New crop arrivals of cotton in Punjab dropped to 14,000/15,000 bales (170 kg each) from the recent average of 18,000/20,000 bales due to cloudy weather and unseasonal rain in some producing areas, he said. In spot deals on Friday, the last trading day, long-staple Gujarat Sankar-4 fell by Rs 200 to Rs 19,000/19,700 per candy (355.56 kg) for the average grade while the superior grade lost Rs 200/300 to Rs 19,500/19,800 per candy under the increased pressure of new crop arrivals.

Punjab saw-ginned was steady at Rs 1,725/1,900 per maund (37.32 kg) while Bengal-deshi was quiet at Rs 1,220/1,280 per maund on fresh mill support. Black pepper prices increased on renewed export enquiries while spot prices ruled low on lack of buying support from domestic traders at the pepper exchange at Kochi yesterday, traders said.

There was a fresh spurt in enquiries for exports leading to marginal rise in prices they said. Yesterday, prices for December rose to Rs 19,250 a quintal from Rs 19,100 a quintal yesterday and January rates were up to Rs 19,650 from Rs 19,290. February rates were quoted higher at Rs 19,850 a quintal against Rs 19,525 a quintal on Tuesday and March finished up at Rs 19,600 against Rs 19,285 yesterday.

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First Published: Dec 04 1997 | 12:00 AM IST

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