Bullion Stages Recovery, Sugar Takes A Tumble

Both the precious metals recovered slightly on the bullion market yesterday on fresh buying influenced by reports of higher foreign market advices and also ended the day better.

Marketmen said the rise in gold prices in the Hong Kong market to 305.50-306 HK dollars per ounce against yesterday's level of 303.40-303.70. Higher outside advices and scattered buying by local parties also influenced the market sentiment to some extent. The volume of business was fair.

Silver .999 (ready) recovered by Rs 20 at Rs 7050 per kilo on increased buying support. However, its coins held unchanged at Rs 10,600/10,900 per 100 pieces on scattered buying support.

Standard gold and ornaments improved by Rs 10 at Rs 4180 and Rs 4030 per ten gram respectively on restricted supply and higher overseas advices. On the other hand, silver was quoted at last level of Rs 3625 per pieces of eight gram.

Sugar: Sugar prices fell yesterday, as consumer buying remained sluggish and a sudden strike by local transporters reduced liftings from the market, traders said. In ready delivery, sugar S-30 fell by Rs 15 to Rs 1,510/1,525 per quintal while sugar M-30 lost Rs 8/15 to Rs 1,540/1,565 per quintal.

Sugar for mill delivery remained untraded due to absence of lifting of sugar from mills, due to a strike by the traders to protest against a five per cent service tax imposed by the centre.

Non-ferrous metals: Base metals eased yesterday, mirroring losses in the world market, dealers said. Demand from industrial buyers remained slow while upsurge in the dollar value against the rupee had little impact on the market. Copper prices fell Rs 100 to Rs 12,250 per quintal, while zinc fell by Rs 50 to Rs 7,550 per quintal.. Tin prices nose-dived by Rs 300 to Rs 30,900 per quintal while nickel prices lost Rs 300 to Rs 30,700 per quintal reflecting a drop in the world prices. Aluminium was quoted unchanged at Rs 8,250 per quintal, as was lead at Rs 4,100 per quintal amid nominal trading.

Oilseeds: December delivery castorseed held steady at Rs 1,235/1,240 per quintal in a narrow band and thin trade, but overseas enquiries and low new crop arrivals provided a firm undercurrent, floor sources said.March delivery too was quiet at Rs 1,155/1,160 per quintal. eanwhile groundnut oil was steady at Rs 336/338 per 10 kg amid limited activity while in Rajkot it was steady at Rs 500/505 per 15 kg.

Imported palm oil rose by Rs two to Rs 276/277 per 10 kg as an upsurge in the dollar value against the rupee kept offerings at a low ebb.

"A rise in the dollar value has lifted lending cost of the imported oil upward dragging prices higher," one broker said.