Gold prices on the decline

Hyderabad (NVS): This year, yellow metal recorded the greatest decline of 28 per cent in its price in last 13 years. In New York bullion market, gold ruled at US dollars 1,246 per ounce. The decline has affected the price spiral in the domestic market also. The premium on forward deals has come down almost by 50 per cent. In silver, despite the prevailing down trend, things are not so bad. The white metal has been playing hide-and-seek and somehow maintained its strength. The expected buying support owing to the attractive prices from the household and personal groups has not come by, thanks to the reduced savings.

The outlook for both the precious metals is moderate as the life-support of the marriage season would no longer be available after a few days. Moreover, high flying speculators have preferred to wait and watch until either fresh relaxation on import of gold are announced by the Reserve Bank or the first Union Budget to be presented by the new government in July.

The standard gold (24 carats) declined by Rs 770 per 10 gm from the last week’s closing of Rs 28,280 per 10 gm and closed at Rs 27,510. Similarly, ornamental gold also recorded a decline of Rs 750 and closed in the range of Rs 26,860-26,960. Silver (0.999) moving in tandem shed Rs 910 per kg from the previous week’s closing mark of Rs 41,130 per kg and closed at Rs 40,220. In principal commodity markets, sentiment was strong. Almost all the wholesale markets at General Bazar, Mir Alam Mandi, Risala Abdulla, Mukhtyar Gunj, Begum Bazar, Kishan Gunj, Kukatpally, Bowenpally and Dilsukh Nagar recorded the overall appreciation in the range of 7 per cent to 16 per cent.