Gold lost sheen over Greece crisis

Hyderabad: Amidst dastardly terrorist attacks on three European countries on Friday and the much awaited solution to the Greece financial crisis, gold and silver remained lower in the international markets during the last week.

According to the sources the long term outlook for these precious metals is not so encouraging. Even if the Federal rates are revised upward in September, there is little hope for the dramatic recovery of these metals. At home, gold imports in the quarter from April-June, 2015 expected to be less than 200 tons as against 226.90 tons import during the preceding quarter i.e Jan-March, 2015.

Standard gold (24 carats) closed at Rs 26, 650 (10 gms) representing a decline of Rs 500 over previous week. The ornamental gold followed the suit and was quoted in the range of Rs 26,020 – 26,120 on the closing day. Silver (0.999), too, recorded further a decline of Rs 900 (a kg) and closed at Rs 36,400 (kg) from Rs 37,300 in the previous week.

The sentiment in principal commodity markets at the Osmangunj, Risala Abdullah, Mir Alam Mandi, General Bazar, Saroornagar, Bowenpally, Kukatpally and Dilsukh Nagar continued to be generally strong. With the reports of better than expected rainfall all the stake holders viz. farmers, traders, government and of course, the consumers have expressed abundant optimism about the prospects of further economic growth.

Jeera, Garlic, Rice, pulses, Chilies and Ginger moved upward while on the other hand, Tamarind, Onion and Coriander ruled at lower levels due to lower demand. Pulses recorded an all-round appreciation in the range of 12 per cent to 22 per cent. The undertone in the wholesale edible oil market at Begum Bazar remained firm with further marginal appreciation of groundnut oil and its refined variant.

However, other common edible oils such as cottonseed refined oil, rice bran refined oil, rapeseed oil and soybean oil remained unchanged at the previous week’s closing levels. In perishables, the common vegetables like potatoes, tomatoes, cabbage, cauli flower, lady’s finger and leafy vegetables the sentiment remained moderate.

As regards the egg market, the week witnessed the prices touching the highest levels. In Hyderabad, the NECC price of eggs recorded a decline of Rs.32 at the closing price of Rs.370 (per 100) . At Rs. 318 , Punjab recorded the lowest price of eggs in the country on the last day of the week. On the other hand, Chennai recorded the highest price of Rs.427.

By Dr Hc Upadhyay