Divergent trends were seen on the Mumbai bullion market last week. Gold ruled weak but silver firmed up.
The decline in gold was attributed to the release of imported gold by the excise department. After initial recovery gold faltered overseas while silver firmed up touching the high of $5.24 per ounce level. Consequently silver ruled firm here with moderate marriage season demand as well as paucity of fresh supplies. Silver imports by the MMTC would be arriving soon. Other agencies would also bring silver. The demand, however, was moderate and dropped at higher levels on fears that values would drop with the regular start of imported supplies in near future.
The sentiment on the foreign markets were mixed with shortage in silver leading to surge in prices while the lack of demand in gold at recovered levels leading to declining trend. Gold imports in the country had already gone up by about 10 per cent than that in the same period previous year.
Standard mint gold commenced last week at Rs 4,100, against the previous close of Rs 4,175 and with the release of MMTC gold stocks values dropped from Rs 4,130 to be finally placed at Rs 4,090. Per 10 gms. Gold 22 carat fluctuated between Rs 3,820 and Rs 3,780. Gold official biscuits lost Rs 900 At Rs 47,900. Silver.999 fineness opened last week at Rs 7,050. Against the previous close of Rs 6,995 and on higher overseas advices went up to touch the high of Rs 7,290 at the close. Silver .916 fineness moved between Rs 7,190 and Rs 6,940. Tenderable silver was demanded Rs 295 per kg higher at Rs .
Oilseeds: After initial firmness castorseed futures lacked transactions at week-end to rule firm on the Mumbai oilseeds market last week.
In the spot section, prices moved narrowly in castorseed and oils but firm in line with the futures. In edible oils, groundnut oil ruled quiet on lower advices from Saurashtra where the inflow of groundnut was on the rise while demand for groundnut oil eased.
Castorseed December contract commenced at Rs 1,221, a low of the week and on bull support coupled with purchases by a prominent shippers lifted the contract to touch a high of Rs 1,249 to end the week at Rs 1,227. The March contract fluctuated between Rs 1,152 and Rs 1,157. Ready castorseed Madras small was better at Rs 1,229 per quintal and castor oil commercial was in demand at Rs 276 per 10 kg. In edible oils,increased inflow of groundnut in Saurashtra had adversely affected the prices of groundnut oil.
