Firm demand for gold

Firm demand for gold
Highlights

Amidst increasing threat of terrorism, economic slowdown is going to be the norm in the years to come. In such a situation, Saturday’s highest price of $1,229 per ounce of gold may become the record of a sort.

Hyderabad: Amidst increasing threat of terrorism, economic slowdown is going to be the norm in the years to come. In such a situation, Saturday’s highest price of $1,229 per ounce of gold may become the record of a sort. While the big players are apparently refraining from the big stakes due to other more lucrative options, gold is losing ground as a sure shot instrument of profit booking in USA and other leading economies.

At home, however, there are high hopes for the yellow metal. Due to the prolonged strike by the gold and bullion traders the end of which is not predictable at the moment, official turnover and tax revenue has taken a beating. The unofficial sources quoted the closing price of the ornamental gold in the range of Rs 28,150-28,250 per 10 gm.

Amidst scorching sun, major wholesale commodity markets at the Osmangunj, Mir Alam Mandi, Kukatpally, Bowenpally and Dilsukh Nagar recorded the firm sentiment. Prices of onions, tomatoes, turmeric and coriander declined marginally while chilly, jeera and rice appreciated in the range of 2 per cent to 4 per cent. On the sugar front, there is bitter news. Sugar production during the period October, 2015 to September 2016 is likely to be lower by 21 per cent in Maharashtra, one of the major sugar producing states.

As against the production of 105.14 lakh tonnes of sugar in the current year, Maharashtra is likely to produce only 83 lakh tonnes. This is likely to jack up the sugar price in the retail market. There is no happy news from the substitute of sugar, i.e. jaggery either. Two years ago, Kolhapur, Maharastra boasted 2,500 jaggery manufacturing units, but today only 400 units are functioning.

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