Steady gains in volatile week

DOMESTIC REVIEW: BULLION

The domestic bullion market saw a modest rise in prices during the week, in the backdrop a volatile equity market. The rise was despite depreciation of the rupee at the start of the week, and a hint of rise in the dollar, towards the end of the week.

During the week ended May 22, spot gold (99.50 purity) closed higher from last week's close of Rs 5640 at Rs 5730 per 10 gram. Spot gold (99.90 purity) rose from Rs 5725 to Rs 5775.

Spot silver (.999) regained its sheen closing at Rs 9430 from last week's Rs 9315 per kilogram.

On the National Commodity Derivatives Exchange (NCDEX), the May 20 contract minorly rose to Rs 5657.15 from previous week's closing of Rs 5641 amid an open position of 1,70,300. Volumes rose from 9100 gram to 1,80,800 gram.

June gold contract rose to Rs 5689 to Rs 5677. The volumes rose from 18900 gram to 42400 gram. Open interest increased from 3,12,200 gram to 4,09,400 gram.

July gold contract minorly dropped to Rs 5708.40 from Rs 5711.45. The volumes rose to 15400gram from 1700 gram. Open interest fell from 59200 gram to 58700 gram.

The pure gold (kilo) June contract closed at Rs 5680 from Rs 5647, with an open interest of just 306 kg and a volume of 12 kg.

The NCDEX silver futures May contract closed at Rs 9103.40 from Rs 8931.50 amid an open interest of 12845 kg. Volumes declined during the week from 3945 kg to 640 kg.

June silver futures volumes fell from 361 kg to 83 kg while open interest increased from 12,075 kg to 14225 kg. The price rose to 8946 from Rs 8910.50.

July silver futures volumes fell from 715 kg to 65 kg while open interest increased from 3135 kg to 3630 kg. The price rose to 8950 from Rs 8925.

On the Multi Commodity Exchange of India (MCX) June gold delivery rose to Rs 5701 from Rs 5653 amid an open interest of 1102 gram with a volume of 544 gram. The August contract however rose from Rs 5740 from last week's Rs 5703.

April mini gold on MCX rose to Rs 5709 as against previous week's close of Rs 5664. There was a rise in volume of contracts from 5 gram to 22 gram, and open interest fell to 81 gram from 94 gram.

The July silver contract closed down at Rs 9184 compared to the previous week's close of Rs 8947. The volume of contract declined from 21,120 kg to 7920 kg, the open interest was 10680 kg from 12090 kg.

The September silver contract closed higher at Rs 9253 on Friday from Rs 9214 last week. The open remained at 480 kg and the volume of contract was 9540 kg.

The July contract for mini-silver closed at Rs 9193 from Rs 8958 last week. The open interest closed at 800 kg and the volume of contract stood at 90 kg.