Gold Recovers, Silver Down, Groundnut Oil Slumps

Gold prices recovered on the Mumbai bullion market last week on fresh bouts of seasonal buying, coupled with firm overseas advices. On the other hand, silver prices continued to fall due to various reasons like poor industrial buying, weak overseas advices and sluggish arrivals.

The market remained closed on February 25 and 28 on account of Mahashivratri and polling day in the city, respectively.

Prices of Standard gold opened better at Rs 3,975 and fell to Rs 3,950 by Thursday. Later, on slight improvement in the overseas advices, prices recovered to close at Rs 3,990, showing a fresh gain of Rs 20 over the previous weeks level of Rs 3,970.

The 22-carat gold also resumed better at Rs 3,675 and ended higher at Rs 3,690 as against last weeks mark of Rs 3,670.

Ten-tola gold bar of .999 purity, after a steady start at Rs 46,500, declined to Rs 46,200. However, towards the fag-end prices recovered to close at Rs 46,800, showing a good gain of Rs 300 over the previous weeks close of Rs 46,500.

Ready silver of .999 fineness resumed weak at Rs 8,760 and fell sharply to Rs 8,500 on Thursday due to steep fall in the international prices.

Later, on fresh industrial buying and poor arrivals, it recovered to close at Rs 8,690, still showing a sharp setback of Rs 80 over the last weeks mark of Rs 8,770.

Similarly, raw silver of .916 fineness opened weak at Rs 8,645 and after falling to Rs 8,385, closed at Rs 8,570 as against the previous close of Rs 8,660. Tenderable silver, after a better start at Rs 8,770 declined to Rs 8,505 and closed at Rs 8,695, disclosing a loss of Rs 80 over the last close of Rs 8,775.

Oilseeds: Trading was featured by a sharp fall in edible oil prices at the oilseeds and oils market during the week under review. The market remained closed on February 25 on account of Mahashivratri and on February 28 for polling in the metropolis.

Among edible oils, groundnut oil eased at the outset and later continued to slump due to heavy arrivals from the producing centres as against poor response from consumers.

On Wednesday prices touched a low of Rs 360 per 10 kgs owing to fresh truck loads of supplies from Andhra Pradesh, while weak trends in the upcountry markets depressed sentiment. Increased arrivals of imported palm oil in the Vashi markets also aided to the weak trend. Imported palm oil dropped in unison. Groundnut ready ruled steady throughout the week.

In the industrial sector, castor oil commercial started on a steady note and gradually edged up during the course of the week on renewed enquiries from exporters and soap industry. As a result, prices ended with moderate gains. Castorseeds ready firmed up due to inadequate stocks position.

Linseed oil ended the week on a steady note. On Wednesday, prices dipped due to fresh supplies from upcountry centres but rallied again on the last day due to fresh inquiries from the paint industry. Linseeds ready ruled quiet.

In the futures market, Castorseeds March contract traded on the first two days of the week.

Prices gained by two rupees from Rs 1,211 to Rs 1,213 on scattered support. Thereafter, the contract remained untraded as it was nearing maturity. Castorseeds June contract took off on a firm footing at Rs 1,257.50 on good support from shippers. Later, it fluctuated either way on alternate supply and demand, but dropped sharply on the last day as profittaking emerged at higher levels and settled at Rs 1,247.50 from Rs 1,250.50 previously.

Groundnut oil slumped by Rs 9 to Rs 361 from Rs 370 last week. Groundnuts ready held steady at Rs 1960. Castor oil commercial firmed up by Rs 2 to Rs 272 and castorseeds Ready Madras by Rs 10 to Rs 1,210 from the last week end close of Rs 270 and Rs 1,200, respectively.

Linseed oil at Rs 325 and linseeds ready at Rs 1,300 were unaltered from the last weekend close.