As rupee regained some strength on Tuesday, gold prices were seen correcting from their three-week high levels. Spot gold lost Rs 215 per 10 gm, while in the MCX it fell below Rs 27,000 levels.
Weaker rupee continued to push gold prices up as the metal gained Rs 150 per 10 gm in the spot market and Rs 100 in the futures market.
Commodities markets tumbled in Asia on Monday as fears spread that a more severe slowdown in China would pull down other economies in the region, denting energy and raw material
Prime minister Narendra Modi has been advocating from the beginning of his term that India should become self-sufficient in edible oils production in the next five years.
Considering the probability of 10 per cent lower rainfall and 15 per cent lesser annual gold price, gold demand is expected to be roughly 11 per cent higher this year to 966 tonnes, finds precious metals consultancy GFMS.
Indian investors always prefer precious metals and stones thanks to their hedging ability against rising inflation and economic uncertainties.
Prices of commodities, particularly of base metals, have been bearish for some time on account of lower Chinese demand and the possibility of a US interest rate hike.
India’s total sugar production is estimated to be 28.3 million tonne in sugar year 2014-15 against annual demand of around 24 million tonne.
Gold and silver prices on Tuesday remained volatile with the devaluation of the Chinese Yuan. The bearish commodity made a three-week high as a knee-jerk reaction to the Yuan
Gujarat one of the largest producers of jeera or cumin seeds in the country, has received good rains in the last couple of weeks. This has increased the moisture content of the soil. Yet this may not lead to increased jeera sowing in the forthcoming rabi season, as anticipated by some analysts.