Silver prices likely to zoom

Silver prices likely to zoom
Highlights

Silver prices likely to zoom. Apprehending steep decline in the official trade volumes due to high import duty of 10 per cent, the apex trade body has appealed to Mrs Sonia Gandhi to intervene in the matter and fix the import duty at 2 per cent.

Hyderabad: Apprehending steep decline in the official trade volumes due to high import duty of 10 per cent, the apex trade body has appealed to Mrs Sonia Gandhi to intervene in the matter and fix the import duty at 2 per cent. In turn, it is learnt Mrs Gandhi has referred the matter to the Commerce Minister, Anand Sharma for consideration. A decision is likely to be taken soon after the return of the Commerce Minister who is at present on an official visit abroad.

And going by the recent decision of the central government to increase the number of subsidised domestic gas cylinder from 9 to 12 on the advice of Rahul Gandhi, an expectation is in the air that Mrs Sonia Gandhi’s advice will be taken seriously. Consequently, if the import duty on gold is reduced, it will result into an accelerated gold inflow which will increase the current account deficit. In fact, as the CAD attributable to gold-import had touched well over 5 per cent, the import-duty had been raised to the double digit level. Meanwhile, a clear trend has emerged in favour of silver.

The demand for silver and its jewellery has been on an increase, particularly owing to the changed preference from gold to silver by rural folks. Therefore, it would not be a surprise if in the coming few months the white metal price touches Rs 50,000 per kg mark from the current ruling price of around Rs 45,000.

During the week both the precious metals remained subdued. Standard gold (24 carats) declined by Rs 110 per 10 gm and closed at Rs 30,340 per 10 gm against previous week’s closing of Rs 30,450. Ornamental gold followed the suit and was quoted in the range of Rs 29,640- 29,740 per 10 gm on the closing day. Silver too, declined by Rs 380 per kg and closed at Rs 45,000 per kg from the previous week’s closing of Rs 45,380.
The sentiment in the principal commodity markets at Osmangunj, Begum Bazar, Dilsukh Nagar, Monda Market and Kukatpally remained moderate. The sentiment in coriander, tilseed, and tamarind was strong. Cereals and pulses also remained strong. On the other hand, onion, garlic, wheat and jeera declined with the arrival of new crop in the market.
During the week, the sentiment in common vegetables continued to remain weak. The common vegetables including potatoes, onions, french beans, kandha and leafy vegetables further declined by 20 per cent to 30 per cent. The NECC eggs in Hyderabad declined by Rs 7 and closed at Rs 368 per 100. On the closing day, the highest price of Rs 420 was reported from Kolkata while Namakkal reported the lowest price of Rs 340.
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