Silver flared up on paucity of supplies coupled with moderate festival demand at the Mumbai bullion market last week.
Gold, however, was barely steady in thin activity for various reasons.
Reports of import of gold under the open general license scheme and sale of gold by central banks were important factors influencing the market.
Overseas advises were encouraging as far as silver was concerned while gold ruled quiet and unable to make further headway due to apprehensions regarding central bank sales.
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Some dealers felt any such sale of gold by a central bank cannot be detected unless otherwise announced by it.
Gold is seen fluctuating in the range of $320 and $325 per ounce at the moment. Silver, on the other hand, was up and notwithstanding the weakness in yellow metal, continued to rule above the $4.50 per ounce mark.
This pattern is fully reflected here with more confidence of buying in silver than gold.
The turnover in gold was at a standstill due to the earlier raids by income tax authorities, followed by the excise department. Some players feel that liberalisation of gold imports would adversely impact the smuggling of the metal as well as the hawala racket.
In view of the political uncertainty and persistently good inflows of contraband gold, values ruled steady in virtually negligible business interest.
Standard mint gold commenced last week at Rs 20 lower at Rs 4,500 per 10 gms and after moving in a narrow range, was finally placed at Rs 4,500.
Gold 22-carat started the last week at Rs 4,160, against the previous close of Rs 4,180 to end at Rs 4,160. Official gold biscuits lost Rs 200 at Rs 52,700 per 10 tolas.
Ready silver 999 fineness commenced last week at Rs 6,425 against the previous close of Rs 6,440 and on scarce supplies along with higher overseas advices shot up, crossing the Rs 6,500-mark when registering a high of Rs 6,550.
Silver .916 fineness, after resuming Rs 15 lower at Rs 6,325, ended the week at a high of Rs 6,450. Tenderable silver gained Rs 110 at Rs 6,555.
Oilseeds weekly: Castorseed futures ruled quiet and extended the previous week's losses to the last week. With the approaching end of the September contract, the contango charges had been on a steady rise.
On apprehension of orders in the September contract, bulls either had liquidated most of their outstanding positions in September delivery or switched over to new contracts, resulting in the widening of carryforward charges.
Higher spot rates had not been maintained and on steady inflow in Gujarat spot, the prices had dropped. Export demand for castor oil had not materialised to the satisfaction of sport-houses or shipper sand hence it would be difficult to maintain high prices of castor seed and castor oils in the spot section.
Castorseed September commenced last week at Rs 1,147 against the previous week's close of Rs 1,152.
It must be recalled that on the Saturday before last, the September contract had collapsed to close low on bull unloading. The declining trend thus was extended afresh over the last week.
However, lower levels attracted heavy bear covering which arrested the slide. The opening level became the high of the week as fresh bull support was lacking.
The December contract started the week with a contango charge of Rs 28 at Rs 1,175 and after declining to a low of Rs 1,166 on switchover buying, went up to close at Rs 1,180.
In edible oils, pressure of imported supplies had adversely affected the sentiment on groundnut oil which started the week Rs 2 lower at Rs 362 to end at Rs 363.
Advices from Rajkot were quiet as the demand had been poor during the current festival season. Buyers, mainly bulk consumers, had been purchasing cheaper imported oils.
Palmolein, on reports of heavy despatches, met with offerings between Rs 256 and Rs 254 per 10 kg.
Grains weekly: Listless conditions marked trading at the Mumbai grains market last week. The inflow was at a low ebb, hampered by the heavy downpour especially towards the weekend.
It was felt that the inflow of new moong and urad crop would be delayed at least by a week. Besides, due to scanty rainfall in Vidarbha and Jalna districts, the production of moong and urad will be affected.
Consequently, the new moong crop was offered only at higher levels of Rs 1,500-1,600 per quintal.
Polished new moong crop was in demand at Rs 2,300-2500 for superior qualities. Urad, however, was steady as new crop arrivals would take at least a fortnight more. The outlook of the crop will be below normal.
In wheat, activity was subdued and prices steady. At the recent steering committee meeeting, the left parties had insisted upon an increasein the quantum of grain supplies to the below-poverty line ration card holders.
According to them, the monthly quota should be about 30 kg rather than the 20 kg decided upon.Punjab inferior moist wheat ruled at Rs 620-630 and better Ganganagar varieties at Rs 675-700; MP-147 at Rs 650-750. Shihori pissi was offered between Rs 700 and Rs 1100.
Rice was steady with Gujarat-17 offered at Rs 1,600-1,700 and kolam at Rs 1,700-2,100 per quintal. Basmati was offered between Rs 3,800-4,300.
Among pulses, deshi gram was steady between Rs 1,325 and Rs 1,350, Kabuli gram at Rs 1,350-1,500. Gram dal was steady at Rs 1,500-1,650 per quintal. Other pulses were generally steady.