Weekly Market Report - Bullion

Bullion: In an otherwise weak bullion market during the past week, fag-end buying for the auspicious occasion of 'Akshaya Tritiya' and recovery in global markets helped both gold and silver prices to partly reduce the losses.

Trading sentiments remained bearish as silver in overseas markets, which sets the price trend in domestic markets, recorded biggest weekly plunge since 1975, on mounting sales by investors on increase in margins in futures trade.

Silver in futures trading at New York Exchange tumbled by 27% this week after CME Group, the Comex owner, boosted the cash amount needed for a speculative position by 84% in two weeks. The metal settled at $35.62 an ounce after slipping to $33.03.

Gold had the largest weekly drop in a year and traded below $1,500 an ounce at $1,462.50, its lowest level since April 14. It recovered later to settle at $1,495.40. Token buying at the fag-end for 'Akshya Tritya', considered to be an auspicious day for buying precious metals, further bolstered the trading sentiment to reduce the losses. 

In the national capital, silver ready commenced extremely weak on day-to-day constant selling in line with a weakening global trend and nose-dived to Rs 53,200 before recovering to settled at Rs 55,500 per kg. The white metal recorded a loss of Rs 16,000.

In a similar fashion, silver weekly-based delivery recorded a hefty fall of Rs 15,700 to close at Rs 54,900 per kg after touching a low of Rs 53,100.

Silver coins also tumbled by Rs 14,000 to Rs 63,000 for buying and Rs 64,000 for selling of 100 pieces. Gold of 99.9 and 99.5 % purity opened lower on weakening global trend and declined to Rs 22,120 and Rs 22,000 per 10 gram, respectively.

They later recovered to finish at Rs 22,200 and Rs 22,080, respectively, showing a notable loss of Rs 975 each. Sovereigns also lost Rs 200 to Rs 18,300 per piece of eight grams.