Gold prices on the decline

Hyderabad (NVS): Despite lower crude oil price and relatively calm world political scenario, the demand for gold in the global market remained low during the week ended Saturday. The white metal also followed the trend and moved within narrow margins. Thus, gold and silver markets continued to remain lackluster throughout the week.

At home, the hopes of the Commerce Ministry and trade bodies have been belied as the new budget has not accepted their plea for lowering the import duty from 10 per cent to 2 per cent. Gold ETF too, have received a lukewarm response from the market mainly due to the lower returns ETF offers.

However, the traders are very confident that the buoyancy would return in the market much sooner than later when the marriage season buying picks up.

During the week gold and silver recorded decline. Standard gold (24 carats) closed lower by Rs 660 per 10 gm. It declined from the previous week’s closing of Rs 27,360 per 10 gm to Rs 26,700. The ornamental gold also moved in tandem and closed in the range of Rs 26,070 - 26,170. Silver (0.999) too followed suit and after registering a decline of Rs 450, closed at Rs 37,250.

The sentiment in principal commodity markets at the Osmangunj, Risala Abdullah, Mir Alam Mandi, General Bazar, Saroornagar, Bowenpally, Kukatpally and Dilsukh Nagar continued to be strong. Staple food grains like rice, jawar, maize, wheat and bajra remained unchanged.

By: Dr H C Upadhyay