Gold loses sheen as rains bid farewell

​Hyderabad: Yellow metal continued to rule at lower levels on weak global trends, thus making the week ended Saturday the seventh week out of eight consecutive weeks to reel under subdued sentiment. Market players have been watching every eco-political development in the world carefully and have preferred to wait for the right time.

At home, though buying of gold and silver jewellery and coins has picked up in view of the onset of the festive season, the week ended Saturday was marred by the farewell rains of the current monsoon season. As the monsoon is all set to retreat next week, the markets are optimistic about the infusion of good demand.

Further, the demand from the rural market is expected to be higher this year, thanks to the good monsoon. However, villagers who account for almost 70 per cent of the market share in the jewellery segment seem to have taken a different route this year. They are waiting for the prices to rise so that they could dispose of their old jewellery at a higher price, add a few rupees more and then buy the latest ones.

During the week, standard gold (24 carats) and pure silver (0.999) declined by Rs 230 (per 10 gms) and RS 850 (per kg), respectively. While the standard gold closed at Rs 31,530 (per 10 gms), pure silver closed at Rs 45,400 (per kg). Ornamental gold was quoted in the range of Rs 30,800 to Rs 30,900 (per 10 gms).

The market operations stood disrupted for five out of six days owing to the incessant rains and Ganesh immersion traffic restrictions. The sentiment was from moderate to strong.Sugar is showing the uptrend and if it continues unbridled, then there is a possibility of it turning the Dussera and Diwali festivals bitter for the common man.

The price in the retail market may cross the Rs 45-50 (per kg) band. However, the authorities, too, have tightened their belts and have made an elaborate work plan to check hoarding by unscrupulous traders and sugar mill owners.

At the same time, here comes some good news. It is officially stated that during the current kharif season, cultivation of cereals and pulses in the country has gone up by 48 per cent. In absolute terms, the production of cereals and pulses is expected to be around 82 lakh tonnes, which would result into reduced imports of these commodities.

In the local wholesale markets at the Osmangunj, Risala Abdullah, Mukhtyargunj, Mir Alam Mandi, General Bazar, Bowenpally, Kukatpally and Saroor Nagar, sugar, jeera, turmeric, coriander and chillies closed at higher levels, while wheat and rice were moderately low.

The recent rains not only brought some relief from the summer-like heat but also brought down prices of the common vegetables considerably. On the other hand, NECC eggs hardened due to disruption of supplies.