Bullion Declines; Nickel, Tin Move Up Sharply

Gold prices declined below the psychological barrier of Rs 4100 per 10 gram level on the bullion market yesterday on expectations of heavy arrivals through the customs sale of accumulated gold and silver.

Silver prices reacted sharply due to lack of support from industrial units coupled with increased arrivals of raw silver in the market. Weak overseas advices partly affected the downtrend.

Standard gold dropped to Rs 4090 from Rs 4120 previously. 22-carat gold was nominally quoted lower at Rs 3780 from the last close of Rs 3810.

Ten-tola gold bar of .999 purity fell to Rs 47,900 from Rs 48,200 previously.

Silver ready .999 fineness declined by Rs 50 to close at Rs 7040 as against the last close of Rs 7090.

Raw silver of .916 fineness and tenderable silver also dropped by a similar margin to close at Rs 6940 and Rs 7045 from Rs 6990 and Rs 7095 respectively.

Oilseeds: Castorseed December delivery was untraded for the consecutive second day on Friday as operators pressed their demand for two clearings each week against the present practice of daily clearing, traders said.

March delivery was untraded for the same reason. The most recent December delivery was indicated at Rs 1,240-1,245 per quintal on Wednesday.

"Foreign buyers are seeking castor oil at 760 dollars per tonne for December delivery and at 725-730 dollars for January-February delivery," he added.

Groundnut oil was steady at Rs 336-338 per 10 kg amid eased supplies from the winter crop. Demand was at a low ebb.

In Rajkot, it was steady at Rs 505-510 per 15 kg.

Imported palm oil fell by Rs 2 to Rs 272-273 per 10 kg as losses in world prices prompted unloading by local importers.

Non ferrous metals: Prices of tin and nickel rose sharply while zinc closed moderately higher on the non-ferrous metals market yesterday.

While tin prices rose by Rs 4 to close at Rs 318 per kilo from Rs 314, nickel looked up by Rs 2 per kilo to finish at Rs 310.

Following are yesterday's rates per kilo: Copper scrap heavy Rs 110 (Rs 110), copper wire bar Rs 122.50 (Rs 122.50), copper utensils Rs 97.50 (Rs 97.50), brass scrap Rs 83.50 (Rs 84.50), brass sheets cutting Rs 91.50 (Rs 91.50), aluminium scrap Rs 62.50 (Rs 62.50), aluminium ingots Rs 82.50 (Rs 82.50), zinc Rs 76 (Rs 75.50), lead Rs 41 (Rs 41.00), tin Rs 318 (Rs 314) and nickel Rs 310 (Rs 308).

Sugar : Sugar prices extended gains on the market, as increased consumer demand met with slow arrivals from mills due to a strike by transporters which ended on Friday, dealers said.

In ready delivery, sugar S-30 gained Rs 5 to Rs 1,520/1,540 per quintal and M-30 rose Rs 15 to Rs 1,560/1,575.