Expect gold prices to fall

Hyderabad: The downward trend in yellow metal continued steadily resulting in to a record-breaking low of $1,090 (per ounce) during the week ended on Saturday. Consequently, big players refrained from making any substantial deals which impacted global demand considerably.

During last 4 years gold has declined by 42 per cent while silver by 66 per cent. Following the reports of stronger economic parameters in the US including the declining unemployment rate and its currency getting stronger day by day, the yellow metal has lost its sheen at least for the present.

During the week, both the precious metals remained at lower levels. In the final tally, both gold and silver further closed at lower levels. Standard gold (24 carats) closed at Rs 25,350 (per 10 gms) representing a decline of Rs 730 over previous week. The ornamental gold followed the suit and was quoted in the range of Rs 24,740 – 24,840 on the closing day.

Silver (0.999) too, declined by Rs 300 (per kg) and closed at Rs 34,300 (per kg) from Rs 34,600 in the previous week. Following the yellow metal breaching the psychological barrier of Rs 25,000 (per 10 gms) there was a sudden spurt in demand. The traders made hey at least during the last three days of the week.

However, small time investors preferred to wait and watch hoping for the further decline in gold. Significantly, the festive-season begins in the next month when the demand is likely to take a boost. For the present, it surely appears that all that glitters is gold! Commodity Market The sentiment in principal commodity markets at the Osmangunj, Risala Abdullah, Mir Alam Mandi, General Bazar, Saroornagar, Bowenpally, Kukatpally and Dilsukh Nagar remained strong.

Staple food grains like wheat, jawar, maize and bajra recorded a marginal increase in their prices. During the week Garlic, Jeera,Chilies,Tilseeds, Tamarind and Ginger moved southward owing to lower demand while Chana , Turmeric, Onions and Coriander recorded marginal appreciation.

By Dr Hc Upadhyay