Indian gold futures rose on Wednesday after a two-day fall, supported by higher global prices and wedding season demand, while sugar and Soyaoil fell on surging stocks. June gold at the Multi commodity Exchange (MCX) was up 21 rupees at 6,166 rupees per 10 grams. June silver at the National Commodity and Derivatives Exchange (NCDEX) rose 80 rupees to 10,490 rupees a kg. Gold prices rose $2 an ounce in Asian trade as a weaker dollar made bullion cheaper for local investors.
Spot gold rose to $428.90/$429.70 an ounce from $427.60 at the start of trading in Asia and $426.45 in New York. "Rise in prices is more in India because of strong demand for marriages," a dealer said.
Demand for gold in India is high during the wedding season as parent's gift ornaments to their daughters for financial security. Soyaoil prices fell as crushing of the domestic oilseed crop peaked and imports flooded the markets.
June soyaoil at MCX was quoted at 383.80 rupees per 10 kg, down 0.39 percent and June soyaoil at NCDEX fell 0.35 percent to 383.50 rupees.
"Crushing of rapeseed is in full swing and imports of soyaoil have increased," a Bombay-based dealer said. "This is having a negative impact on the markets." Dealers said soyaoil prices were unlikely to recover in the coming days. "The prices will go up only if some international factors come into play because a lot of oil imports are in the pipeline," a broker said.
Sugar slipped because of ample stocks of imported raw and government releasing good quantities for sale in the market. "Everyone estimated supplies would be tight and imported raw sugar in large quantities but now the situation is the other way around," a New Delhi-based trader said.
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