Upward Swing in Gold Prices

The weakening of rupee and non-availability of pepper outside the exchange resulted in the prices of this sibling of salt zooming up to Rs.7,150 from Rs.6,850 per unit (per 10 tonne) on June 26. Delhi Trade Forum’s Rathod further blames futures trading for the upward swing in gold prices from Rs.6,200 six months ago to Rs.11,500 per 10 grams last month, and silver from Rs.12,200 per kg to Rs.19,800. There are also allegations of some tainted stock market players like Ketan Parekh manipulating the commodity market to book heavy profits. The NCDEX Managing Director P. H. Ravi Kumar denies this. In any case the exchange itself imposes margins to ward off speculators. Recently, NCDEX imposed a margin of 45% on urad dal and 18.5% on tur dal to discourage speculators. Trading on mentha oil had to be suspended for sometime on July 9, “In view of very high volatility,” said another NCDEX official. But, other exchanges don’t put up such stringent safeguards. The basic issue now is how to strengthen the commodity regulator and speed up the physical delivery system.

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Source:- IIPM-Business and Economy,

Initiative:- Prof. Arindam Chaudhuri