Gold, Silver Better; Groundnut Oil Steady, Grains Firm

Despite weaker overseas advices precious metals ruled better here last week. Overseas, gold dropped below $300 mark after touching a 12- year low at $308.50 per ounce.

Silver ruled firm, crossing $5 mark at $5.20, but eased slightly from the higher level in sympathy with gold. The Mumbai bullion market was devoid of any ready stocks and had to depend on fresh supplies from abroad.

MMTC, STC and HHEC had already imported the bullion. Imported gold had been detained by the excise department in Mumbai, demanding 5 per cent duty. However, Ahmedabad customs permitted the imports without duty. The Centre had issued notification clarifying the rules and the excise department then permitted release of the gold. The delivery would take place only after the payments. Supplies would now be augmented by the MMTC releases.

HHEC had also started importing gold and silver on behalf of the trade taking commission ranging from 1.5 to 4 per cent.

Now banks permitted to import gold and silver would also do so. Gold standard opened last week at Rs 35 lower at Rs 4,200 and rose to Rs 4,240 but was finally placed at the low of Rs 4,175 per 10 gms. Gold 22 carat fluctuated between Rs 3,860 and Rs 3,920. Gold biscuits was up from early low of Rs 49,100 to Rs 49,600 to end weak at Rs 48,800 per 10 tolas. Silver .999 fineness resumed last week Rs 20 higher at Rs 6,820 per kg and dropped to Rs 6,805 early and moved up later to Rs 6,845 but on paucity of stocks was traded as high as Rs 7,000 on Friday to end at Rs 6,995 per kg.

Silver .916 fineness after declining to Rs 6,705 ended at Rs 6,895. Tenderable silver was placed at Rs 7,000 against Rs 6,805 the previous week.

Oilseeds: A firm tendency in castorseed futures and spot prices provided the main feature of trading here last week.

Castorseed current contract rose to cross Rs 1,200 mark and only at higher levels profit-taking emerged, r restraining further gains.

Castorseed December contract after commencing last week a rupee higher at Rs 1,178.50 firmed up on bull support alongwith entry of an export-house, the contract started rising. At the same time bears rushed to cover the short position lifting the contract to touch the high of Rs 1,212 at which level profit-taking ensued to arrest further rise.

The March contract after resuming at a low of Rs 1,133 went up to the high of Rs 1,155 to close at Rs 1,149 The December contract ended the week at Rs 1,217. In the spot section, castorseed Madras small firmed up from Rs 1,200 to Rs 1,219 per quintal.

Castor oil commercial gained Rs 4 at Rs 274 per 10 kg. In edible oils, groundnut oil ruled quietly steady due to limited inflow. Groundnut oil after early rise of Rs 345 eased to Rs 341 per 10 kg. Palmolene was demanded Rs 3 higher at Rs 271 per 10 kg.

Grains: A steady to better tendency was witnessed here last week. Pulses prices recoveredon moderate buying support. Wheat ruled steady .

Prices of coarse grainsruled firm . Wheat was steady in limited activity. Punjab inferior moist wheat fetched Rs 580-600 per quintal. Ganganagar wheat was offered at Rs 675-700 and Madhya Pradesh-147 at Rs 700-800. Shihori Pissi fetched Rs 800-1,200. Activity in rice was moderate. The inflow of new crop rice from Gujarat and Maharashtra had been on the rise. Gujarat-17 ruled at Rs 1,700-1,725 and Kolam at Rs 1,750-1,800. Basmati was traded between Rs 3,800-4,300. In coarse grains jowar was steady between Rs 400 and Rs 800 and bajra between Rs 450 and Rs 700. Maize was traded at Rs 375-550.