Gold rules firm, prices up

Hyderabad(NVS): With the further decline of global crude oil prices during the week ended Saturday, the big market players concentrated on the yellow metal, infusing some buoyancy in the otherwise sagging market. The white metal too followed the suit and recorded an appreciation.

At home, as was expected, the fresh buying initiative by the small time household investors infused optimism in the market. However, it is not ‘all clear’ for the big players as they would rather prefer to wait and watch for some more time before embarking upon any big stakes. During the week, gold remained firm and closed further higher by Rs 710 per 10 gm.

The standard gold (24 carats) appreciated from the previous week’s closing of Rs 27,200 per 10 gm to Rs 27, 910 followed by pro-rata gain in the ornamental gold which closed in the range of Rs.27, 250 - 27,350. Silver (0.999) too rose by Rs 1,420 at the closing level of Rs 38,320 per kg from Rs 36,900 in the previous week.

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 moderate. Staple food grains like rice, wheat, jawar, maize and bajra moved within narrow margins. There was an all-round spurt in the common cereals and pulses. In particular, urad dal, moong dal, masoor dal and tuar dal further appreciated in the range of 7 per cent to 12 per cent while sugar, chilies, garlic and ginger remained unchanged. With the decline of the diesel price, the freight component is bound to decline which would have cascading effect on the prices of virtually all commodities. However, it remains to be seen how much of the savings on freight is passed on to gullible consumers.