Prices plummet on global cue

Domestic Market Review: Bullion

The price of gold in the international markets plummeted towards the end of the week with the stronger than expected jobs data that was announced in the US on Friday that propped the dollar.

This saw a huge liquidation on the New York Mercantile Exchange's Comex. The benchmark June gold closed at $427 from 436.10 per troy ounce last week. The spot London gold fix too closed the week lower at $425.15 (PM) from $435.70 (PM) last week.

In the local market, during the week ended May 7, both precious metals tracked the international markets. Spot gold (99.50 purity) in Mumbai closed at Rs 6,080 per 10 gram from Rs 6,200 last week.

Spot gold (99.90 purity) closed at Rs 6,115 after last week's close of Rs 6,235. Spot silver (.999) closed at Rs 10,570 from last week's Rs 10,550 per kilogram.

Futures trading saw a dip in the weekly prices as well. However, the open interest continued to move upwards despite lower volumes, indicating a positive trend in the future.

On the National Commodity Derivatives Exchange (NCDEX), the May gold closed lower at Rs 6,181.00 compared with last week's close of Rs 6,238.00. Open interest and volumes were at 5,76,600 gram and 22,000 gram respectively.

The June gold contract closed at Rs 6,217.00 from Rs 6,257.00 with an open interest and volume of 2,39,100 gram and 12,200gram respectively.

Silver contract in May on NCDEX closed at Rs 10,555.00 compared with Rs 10,818.00 last week. The open interest closed at 1,28,500 kilogram while the volume of contract stood at 65,585.

The June contract closed at Rs 10,603.00 from Rs 10,828.00 last week, with an open interest of 51,930 and a volume of 23,265.

On the Multi Commodity Exchange of India (MCX) the May 31 contract closed at Rs 6,225.00 from Rs 6,260.00 last Monday with an open interest of 481 kg, and a volume of 17 kg.

The August contract closed at Rs 6,161.00 from Rs 6,227.00 with open interest of 5,640 kg and a volume of 1,009 kg.

The June Gold HNI (High Net Worth Individuals) contract closed at Rs 6,028.00 from Friday's Rs 6,052.00, with an open interest of 9 kg and no volumes.