Trading in gold resumed on Saturday after a 21-day strike by jewellers. However, prices dropped on cues from the global markets. Futures, on the other hand, closed marginally higher.
According to the Bombay Bullion Association, ornament gold ended at Rs 27,895 for 10 gm. This was lower than the March 17 close of Rs 28,040. Pure gold closed at 28,020 (28,160). Silver finished lower at Rs 56,275 (Rs 56,290) a kg.
In Chennai, ornament gold was quoted at Rs 28,115 for 10 gm against the previous close of Rs 28,540. Silver was down at Rs 56,145 (Rs 57,570) a kg.
In the futures market, all gold and silver contracts gained marginally. June contracts closed at Rs 28,199 for 10 gm. Silver contracts for May delivery closed at Rs 56,221 a kg.
Trading interest in the futures was lukewarm as the global markets were shut on Friday.
The bullion markets began functioning on Saturday after downing shutters on March 17 in protest against the proposals of the Union Finance Minister, Mr Pranab Mukherjee, to hike the import duty and impose excise on unbranded jewellery.
The strike was withdrawn last evening after the jewellers’ representatives met Mr Mukherjee and the United Progressive Alliance leader, Ms Sonia Gandhi.
Though Mr Mukherjee made no commitment, he is expected to announce some relief to the trade when he replies to issues raised on the Budget proposals on April 24.