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Sunday, August 10, 2008

Gold, silver lose shine on soaring inflation, firm $

EASING crude oil, firm dollar and spiralling rate of inflation kept Delhi bullion market bearish past week with both gold and silver plunging to new lows. Closely following the global trend, Spot Silver (.999) on the Delhi bullion market held strong at Rs 24700 per kg in the early part of the week on the back of firm London silver, which edged up from 1743 cent to 1755 cent per ounce. However, heavy speculative selling during the later part of the week plunged London silver to a low of 1528 cent, pulling down spot silver here to a new low of Rs 21900 per kg end week.
    According to marketmen, with gold in London after maintaining a poise at $910 dipping to $855, gold standard (.999) here after opening at 12660 improved to Rs 12710 per 10 gm, but with investors
facing fund crunch, gold came tumbling down to Rs 11850 per 10 gm end week, losing by a hefty Rs 810 as crude oil touched a low of $ 115 per barrel. Gold Sovereign also suffered a loss of Rs 350 at Rs 9500/9900 per 8 gm. Gold one kg bar of .950 fineness in tune with the trend closed weak at Rs 11800 per 10 gm.
OIL & OILSEEDS
Closely following the overseas trend, the Delhi oil and oilseeds market remained depressive past week with all major edible oil and oilseeds dipping further amid nervous selling by stockists. According to marketmen, with the CPO (crude palm oil) in Malaysia tumbling from $ 975/980 to $ 900/905 per tonne amid speculative selling and weak demand from Asian countries and CPO futures on KLCE (Kuala Lumpur Commodity Exchange) down minus 275 Ringgit, this led to heavy selling by stockists in the
domestic markets. Moreover, with re-sellers also on the selling drive, edible oil prices on the Delhi market plummeted by 150/200 per quintal as CPO at Kandla port tumbled from Rs 4210 to Rs 3980 per quintal.
GRAINS & PULSES
The Delhi wholesale grains and pulses market ruled mixed past week amid fluctuating signals from upcountry market centres. In the cereals section, rice fine such as rice 1121 and sela dipped by Rs 200/400 to Rs 4800/4900 per quintal. Rice raw and steam closed weak at Rs 5400/5500 per quintal. According to marketmen, rice acreage this year is up by over three times as compared to last year. Moreover, good monsoon rainfall also have raised hopes of bumper paddy crop this year. All this, kept buying sentiments weak. Also, increased arrivals of new crop from upcountry market centres of Uttar Pradesh led to selling pressure, pulling down rice prices further on the
wholesale market. Rice basmati towed the line with prices slipping from Rs 6400/6900 to Rs 6000/6400 per quintal on stockists' selling.
NON-FERROUS METALS
The Delhi non-ferrous metals market ended largely on a weak note past week amid lacklustre demand and weak LME (London Metal Exchange) advices. Tin ingot lost heavily by Rs 66 per kg to Rs 1092 on sustained selling by stockists as tin on LME tumbled from $ 22347 to $ 19850 per tonne on speculative selling. Tracking LME copper, which slipped from $ 8190 to a low of $ 7660, copper wire scrap, sheet cutting and mixed copper scrap plunged to a low of Rs 355, 350 and Rs 328, losing Rs 13.50/14.00 per kg. Copper rod and ingot also ended weak at Rs 387/380 per kg. Zinc sheet lost Rs 6.50 at Rs 97/105 per kg, while zinc dross slipped to Rs 85 per kg on selling pressure.



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