Vol. 5 Num 568 Sat. December 31, 2005  

Indian gold futures move in tight range

Indian gold futures moved in a tight range yesterday on thin trading volumes as traders stayed away during the holiday season, while sugar slipped in anticipation of buoyant supplies.

February gold on the Multi Commodity Exchange rose 15 rupees to 7,610 rupees per 10 grams. April gold was up 8 rupees to 7,656 rupees.

"The market is moving on individual buy and sell transactions because of the thin trading volumes. Most of the traders are away for the holiday season and trading will pick up only next week," said an Ahmedabad-based trader.

He said the international spot gold price was likely to hover above $500 an ounce for the next three to four days.

Gold prices in India, the world's largest importer and consumer of gold, usually track those in the international market.

Sugar futures slipped on expectation of higher supplies in the market in January, when cane crushing is at its peak.

January sugar futures fell 8 rupees to 1,828 rupees. April sugar was down 14 rupees to 1,899 rupees.

"Sugar prices will go down further over the next fortnight as the supplies are expected to peak during that time," said another trader.

Soyoil futures extended their fall in India, the world's leading edible oil importer, as traders expected the government to lower base import prices of oils.

The January soyoil contract on MCX fell 0.08 rupees to 337.90 rupees.

Wheat futures rose marginally. The January wheat contract was up 1.2 rupees at 808.80 rupees.