Demand for gold drops

Hyderabad: Due to strong sentiment in the share market, the yellow metal just managed to retain its sheen. New York closed at $1,280 while Silver closed at $14.50.

Brent and Crude prices firmed up during the week. Brent closed at $68.50 whereas Crude closed at 4068.

Other economic parameters too, were firm. Copper closed at 415.20 while Gold MCX stood at Rs31,595 (per 10 gms). Silver MCX closed at Rs36,522 (per kg).

Following the land-slide victory of the BJP, share market zoomed to the dizzy heights. Sensex and Nifty 50 closed at 39,434.72 and 11,844.10 points respectively.

In the forex market, Indian Rupee (INR) gained strength against $ and other major currencies. $ to INR closed at Rs69.59 while Pound Sterling was exchanged for Rs88.60.

Similarly, Euro, Canadian dollar and Australian dollar commanded the exchange values of Rs78.13, Rs51.91 and Rs 48.30 respectively.

Singapore dollar closed at Rs50.72. Among Gulf currencies, UAE dirham and Saudi rial were exchanged for Rs19.06 and Rs18.66 respectively.

At home, amidst sluggish demand both the yellow and white metals recorded decline. Traders had accumulated fairly good stock of these precious metals with a view to make good profit remotely though, anticipating political uncertainty after the results of the parliamentary elections.

However, the results have beyond all doubts established the ruling BJP in power once again. Hence, the traders have off-loaded the stocked gold and silver in the market that also contributed towards declining prices.

Standard gold(24 carats) declined by Rs220 and closed at Rs31,960 (per 10 gms).

Ornamental gold too, moved in tandem and was quoted in the range of Rs30,260 -30,360 on the closing day. Silver (0.999) too, recorded a decline of Rs250 and closed at Rs36,350 (per kg).