Gold, silver lose sheen on muted demand

​Hyderabad: Amid Mosul (Iraq) witnessing the last ditch fight between the ISIS terrorists on the one side and the Iraqi-American combined forces on the other, global markets remained nimble for the third week consecutively. The big-players preferred to wait and watch the situation until the final death bells for the ISIS terrorists ring. Therefore, the sentiment in gold, silver and other precious metals was moderate.

Added to this situation, the election of Donald Trump as the next President of the mighty empire called the US has triggered a lot of heart-burning among illegal migrants and the ISIS terrorists and its supporters.

This has led to the unprecedented demonstrations in some parts of the country. However, experts do not give much credence to the present scenario in the US and are hopeful that the protests would die their natural death once Trump assumes his office on January 20 next year or even earlier.

At home, amid the dust and din following the demonetisation of Rs 500 and Rs 1,000 currency notes, the market witnessed an unprecedented ‘gold rush’. But this rush was not for the officially sold gold against PAN card and invoice but it was triggered by the black money hoarders.

Taking advantage of this situation, some unscrupulous jewellers made hey by selling the yellow metal at varied rates from Rs 40,000 (per 10 gms) to Rs 55,000. Thanks to the sufficient stock of smuggled gold and its regular flow the business has been as usual as the lower spiral of gold prices would suggest.

During the week ended Saturday, standard gold (24 carats) registered a decline of Rs 980. After closing at Rs 30,600 (per 10 gms) in the previous week, gold prices dipped consistently during the week and finally closed at Rs 29,620. Ornamental gold also declined proportionately and closed at Rs 28,930. Silver (0.999), too, followed suit and shed Rs 3,000 (per kg) during the week before closing at Rs 41,900 (per kg). There is no likelihood of any let up in the current scenario during the week ahead.

The sentiment in the principal wholesale commodity markets like the Osmangunj, Risala Abdullah, Begum Bazar, Mukhtyargunj, Kishangunj, Mir Alam Mandi, General Bazar, Kukatpally, Saroor Nagar, Bowenpally and Sainikpuri remained moderate.

Though the impact of cash shortage was felt hugely in all these markets the business transactions were carried out in humble volumes. The situation is likely to ease in due course.

The most-hit market segment was perishable goods such as common vegetables and particularly the leafy vegetables, milk and curd and eggs. The NECC eggs in Hyderabad crashed by Rs.51 and closed at Rs. 340 (per 100).