Gold prices appreciate post Budget
Hyderabad: The declaration of medical emergency by the World Health Organisation (WHO) over Coronavirus has led the investors towards gold which is considered as the safe mode in such situations.
Following this panicky situation, gold moved up to close at $1,591.48 (per Oz). Silver also moved up and closed at $18.12. Platinum and palladium followed suit and closed at $961.30 and 2,290.50 respectively.
Immediate reaction of the Union Budget on share market and jewellery market has been certainly negative though in due course as people comprehend its finer points, the trend is expected to reverse.
At home, gold declined even before the announcement of the Budget proposals after the official announcement reducing the monetary limit of Rs 2 lakh to Rs 1 lakh for the purchase of gold for which PAN is mandatory.
The traders were demanding lowering of import duty on gold from 12.5 per cent but that has not come through. Gold MCX closed at Rs.32,657 (per 10 gms) while silver closed at Rs.47,114 (per kg). Copper closed at Rs 426.40 (per kg).
The local jewellery trade also expressed dissatisfaction over the new directive and felt that it would adversely affect the current marriage season's buying. Standard gold (24 carats) appreciated by Rs 700 and closed at Rs 40,810 (per 10 gms). Ornamental gold moved up in tandem and was quoted in the range of Rs 38,740-38,840. Silver (0.999) declined by Rs 100 and closed at Rs 46,900 (per kg).
The sentiment in precious metals is likely to firm up further in view of the prevailing volatility in markets.
COMMODITIES
The sentiment in principal wholesale commodity markets was from moderate to strong. The announcement of various farmer-friendly schemes in the Budget has cheered up the agriculture sector.
The vegetables and eggs ruled easy with the common vegetables and NECC eggs remaining at affordable prices. In Hyderabad, the wholesale egg price dropped by Rs 5 and closed at Rs 355 (per 100).
Surat recorded the highest price of Rs 435 while Ajmer, the lowest of Rs 330.