It's not shining any more

DOMESTIC REVIEW/BULLION

The domestic bullion market lost its sheen as prices fell during last week following weaker prices in global markets. Bullion prices are expected to see a turnaround in the coming week as lower prices may lure higher offtake.

In the domestic market, spot gold (99.50 purity) declined from Rs 6035 to Rs 5845 per 10 gram during the week ending 17 April. Spot gold (99.90 purity) fell from Rs 6080 to Rs 5885.

Spot silver (.999) also lost its lustre and fell to Rs 11090 per kilogram to Rs 12075.

Gold futures on the Comex division of the New York Mercantile Exchange reversed recent series of losses and settled over $3 higher Friday after a solid consolidatory session. The most-active June contract settled a hefty lower on week over week basis by $ 19.10 at $401.60 per ounce from previous Thursday's close of $ 420.70.

There was an extensive sell-off last week in which June prices pulled back from highs Monday around $423 to lows around $396 Thursday. The market is potentially primed for a rebound should the US dollar continue to lose recently-made ground and geopolitical tensions remain high, said traders.

However, a spate of consolidation and base-building is expected. Physical demand could build up at lower levels and speculator appetite for the metal can return following this week's shake-out.

On the National Commodity Derivatives Exchange (NCDEX), April gold delivery that will expire on 20th also slipped to Rs 5823 from previous week's closing of Rs 6041.50 amid higher open position of 33,880 (one sided) from 318,500. However, volumes dropped from 55400 contracts to 19,300 contracts (one sided).

The volumes of April contract were rolled over to May. Volumes jumped from 14,200 to 33,900 contracts. Open positions in May gold delivery also increased from 199,300 to 242700.

June gold contract declined from Rs 6087.90 to Rs 5897.35. The volumes declined from 30,700 to 13,100. Open interest increased from 145,500 to 167,600.

On the Multi Commodity Exchange of India (MCX) June gold delivery fell to Rs 5866 from Rs 6081 amid a jump in open interest to 1027000 from previous friday's 368000. August Delivery also shed price to Rs 5946 from Tuesday's Rs 6085. April delivery expired on 14th at Rs 5913.

Mini April gold on MCX dropped sharply to Rs 5882 as against previous week's close of Rs 6077. While there was increase in volume from 27 contracts to 112 contracts, open interest jumped from 27,200 to 62,400.

NCDEX April futures declined in volume, price and open interest and rolled over to May contract. May silver futures price declined from Rs 11895.45 to Rs 10665.95 amid an open interest of 7250 (one sided). Volumes increased during the week from 435 to 1815 (one sided) contracts.

June silver futures volumes fell from 1435 to 535 contracts while open interest increased from 4045 to 4170. The price too took a hit and fell to Rs 10684 from Rs 11896.

MCX May silver declined from Rs 11937 to Rs 10621 alongwith a decline in open interest at 6780 from 10380. Volume increased from 4440 to 7260. July contract also registered fall in price from Rs 11900 to Rs 10735.

However volume increased from 240 to 540 and open position were up from 870 to 1470. September contract declined from Rs 11773 to Rs 11159. Volumes dropped drastically fell from 4560 to 60 contracts.