Gold Prices Fall Afresh; Tin, Nickel Move Up

The downtrend continued unabated in the prices of gold on the bullion market yesterday when the yellow metal dipped to another low level of Rs 4020 due to weak global prices coupled with better supplies and poor offtake, dealers said.

Fall in the world gold prices prompted stockists selling and inadvertently affected the prices in the domestic market, they said.

"The persistent fall in the value of rupee against dollar encouraged increased supply. Though marriage season is round the corner, there are less buyers as consumers are waiting for the prices to fall further", a bullion dealer said.

Silver, however, improved due to reduced supplies coupled with slight improvement in the overseas advices.

Standard gold declined by Rs 40 to close at Rs 4020. 22-carat gold was quoted lower at Rs 3720 as against the last close of Rs 3755. 10-tola gold bar dropped by Rs 500 and closed at Rs 47,000 from Rs 47,500.

Silver ready of .999 fineness, raw silver of .916 fineness and tenderable silver all improved by Rs five each to Rs 7270, Rs 7170 and Rs 7275 as compared to the last close of Rs 7265, Rs 7165 and Rs 7270 respectively.

Oil & Oilseeds: Castorseed December and March delivery were untraded yesterday as operators continued their agitation for two clearings a week, dealers said.

"Operators had suspended trading since last Thursday and the deadlock has continued as the Forward Market Commission remained firm for daily clearing," one trader said.

"Trading is suspended but the market undercurrent has now turned weak after recent firmness on news of rising new crop arrivals in the producing centres," another broker said.

Groundnut oil was steady at Rs 333/335 per 10 kg in a narrow band amid thin trading. In Rajkot, it rose by Rs 5/10 to Rs 510 per 15 kg on seasonal support at the lower level.

Imported palm oil settled a rupee lower to Rs 275/276 per 10 kg amid demand resistance while higher prices attracted profit taking by local importers.

Non-ferrous metals: Copper lost ground on the local market yesterday while tin and nickel prices moved up further with other base metals ranged, dealers said.

Copper lost Rs 50 to Rs 12,150 per quintal amid sluggish demand prompting profit-taking, dealers said. Copper was up by Rs 50 per quintal on Wednesday.

Tin and nickel, on the other hand, extended gains amid thin supplies, a rise in the dollar's value against the rupee and rising world prices.

Tin spurted by Rs 500 to Rs 33,000 after gaining Rs 400 on Wednesday while nickel shot up by Rs 300 to Rs 32,200 after gaining Rs 300 on Wednesday.

Aluminium was quiet at Rs 8,250 as was lead at Rs 4,100 per quintal amid nominal trading. Zinc was steady at Rs 7,600 after gaining Rs 50 on Wednesday.