Gold Tumbled On The Bullion Market - March 19, 2009

The gold tumbled on the bullion market on Wednesday due to selling by the stockists as equity market surged, eroding the demand for the metals as alternate investment. The gold prices fell by Rs 140 to Rs 15,100 per ten gram. The silver also followed the same trend and lost Rs 240 to Rs 21,480 per kg on frantic selling by market participants.

A weakening trend in overseas markets along with the fall in demand due to off marriage and festival season were another factor that dampened the metal. The gold in London dipped 0.7 per cent to 908.88 dollar an ounce in early trade. Similarly, the silver also fell 0.6 per cent to 12.66 dollar an ounce as stocks in America, Europe and Asian region recorded fresh gains on easing recession concerns and better than expected U.S. housing data.

Rupee Rallies By 11 Paise - March 17, 2009

The Indian rupee in line with the firm equity markets also rallied further by eleven paise to close at 51.40/41 against the greenback. The rupee also got the boost from the weak dollar overseas that amid fresh capital inflows.

In two-way trade at the Interbank Foreign Exchange (Forex) market, the domestic unit resumed higher at 51.33/34 a dollar from its previous close of 51.51/52 but later slipped to a low of 51.70 in afternoon trade due to weakness in local equity markets. However, a smart recovery from the initial downtrend in stocks led the rupee to rebound to a high of 51.31 a dollar before concluding the day at 51.40/41

The BSE Sensex closed up by 186.93 points or 2.13 per cent, gaining a total 783.14 points or 9.60 per cent in three trading days since March 12.