MUMBAI, November 27: Gold prices softened further to touch 5-years lowest level on the bullion market here today. Silver on the other hand recovered on renewed buying interest.

Standard gold slipped from Rs 4,060 to Rs 4,020 per 10 gm. Gold .22 carat moved down from Rs 3,755 to Rs 3,720 per 10 gm. in sympathy. Prices of a gold biscuit (116.50 gm.) crashed by Rs 500 at Rs 47,000 per piece after losing Rs 400 on Wednesday. Demand was dull while higher supplies triggered fresh selling. Firm trend in dollar value failed to cheer up the market sentiment owing to losses in the world market. In the overseas market gold slid to $ 296.40/296.50 an ounce.

Silver .999 commenced Rs 10 higher at Rs 7,275 per kg aided by modest recovery in the international market and later on due to continued arrivals of contraband silver, prices drifted downward to Rs 7,220 per kg. Silver .916 moved in both ways and settled down Rs 5 higher at Rs 7,170 per kg. In the world market, silver recovered by 3/4 cents at $5.28 an ounce.

G'nut oil recovers

Groundnut oil recovered trimming recent losses on the oil,oilseeds market here today. Castorseed and its oil looked up modestly and there was no trading in the forward delivery.

Groundnut oil spurted from Rs 331 to Rs 337 per 10 kg on hectic buying enquiries both from retailers and consumers at the lower level on fear that wholesale traders may go on indefinite strike from December against service tax imposed by Central government. In Rajkot prices looked up by Rs 5 at Rs 510 per 15 kg. Imported palm oil edged up by a rupee to Rs 276 per kg exclusive of tax on the back of hike in the landing cost following upsurge in the dollar value against rupee.

Castor oil placed 50 paise up at Rs 278.50/290.50 per 10 kg on fresh overseas demand. Castorseed ready quoted Rs 3 higher at Rs 1235/1241 per quintal. Meanwhile trading in the castorseed December and March deliveries remained suspended as brokers were kept sideline to press their demand for two clearings a week as against daily clearing, floor sources said. Trading remained suspended since last Thursday and the deadlock was continued as Forward Market Commission was firm for daily clearing, said Mr. Navinchandra Shah, President of Bombay Oil Exchange.

In Ahmedabad December delivery opened lower at Rs 1176 before concluding the session at Rs 1181.50 while March delivery commenced at Rs 1311 but closed firm at Rs 1137.50 per quintal.

Cotton subdued

A dull-to-subdued trend prevailed on the cotton market following slack mill demand.

Arrivals in Punjab zone were around 17,000 bales. Price ebbed by Rs 5 to 10 a maund following lacklustre mill inquiries. J-34 saw-ginned Rajasthan ruled at Rs 1730-1765, Bhatinda Line at Rs 1800-1850 and Main Line at Rs 1860-1900 spot.

Manavadar Sanker loose were static at Rs 1100-1150 per 20 kgs. Bales were quoted in the range of Rs 19,800-20,500 a candy. Botad Sanker found sellers at Rs 19,300 and Kadi Sanker at Rs 19,500.

Wheat firms up

Trading continued to be hit by the ongoing stir against the service tax. Prices of wheat firmed up further on tight supply.

Wheat Ganganagar were up at Rs 900 and Gujarat varieties in the range of Rs 800-950 a quintal as the stocks hit the rock bottom level. MP 147 and Sarbati were maintained at Rs 950-1100 and at Rs 1200-1400 respectively. Milling wheat moist ruled at Rs 665 and good quality at Rs 675.

Rice price ruled unchanged following reasonable stock level. AP Masoori and Katar were traded at Rs 950-975. SLO ruled at Rs 915-931. AP cultured kolam ruled at Rs 1050-1150 and Gujarat-17 at Rs 1050-1200. Permal superior found support at Rs 1100-1150.

Yarn quiet

A very quiet condition continued on the yarn market following no respite from acute monetary crunch.

The demand in polyester yarn remained very dull. Besides, undue delay in he return of the dues have also turned the trade wary of extending the committments. Prices ruled quietly steady. Grey first quality of medium-sized units 80dn rotoset were placed at Rs 100-103 and Micro rotoset at Rs 110-112 a kg. 80dn weft and warp were on offer at Rs 92-94 and at Rs 112-113 respectively. 80/1000dn were mentioned at Rs 135-145 and 80/1400dn at Rs 145-160.

In the case of 150dn, weft were on offer at Rs 84-85 and warp at Rs 100. 150dn single rotoset and double rotoset found sellers at Rs 92-93 and at Rs 97-98 respectively.

Sugar unquoted

The activity was absent on the sugar market for the second day in succession and the price remained unquoted in the Vashi wholesale market. Meanwhile, the sugar reported to have sold at Rs 20 a kg in retail.

Tin, nickel spurt

Prices of tin and nickel rose sharply while copper wire bar eased marginally on the non- ferrous metals market here today. However, other base-metals held steady.

Tin strengthned by Rs 5 per kg to close at Rs 330, nickel showed a rise of Rs 3 at Rs 322.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.