The rally continues in Guar. Production is expected to decrease due to less rainfall in the producing areas. On the other hand, despite the futures ban, buying is being seen in gram. Soyabean is also trading with an increase.
On the other hand, talking about non-agri commodities, after the decline of last week, buying has returned in metals. Nickel on MCX is seeing an increase of about two and a half percent and one percent in Copper. Buying also dominates in aluminum and zinc. The weakness in the dollar also supported the metals.
Crude oil is showing a great recovery from lower levels. The price of Brent has reached near $67. MCX and Noymax crude are also seeing a rise of three percent each, but the concern about demand still remains.
Buying in gold and silver is being done due to improvement in spot demand and pressure on upper levels in dollar. Gold remains above 47,000 on MCX. On the other hand, silver is showing a gain of more than one percent.
Strength in gold – rise in silver, after good recovery in crude, which commodity to buy now
Here the jewelers are on strike today due to the problems being faced in implementing the mandatory hallmarking. Jewelers don’t want HUID to be imposed on them. Along with this, jewelers are also demanding extension of the deadline of August 31. Even 22 months after the notification of mandatory hallmarking was issued, jewelers are not able to implement it. Jewelers are on strike in view of the problems arising in this.
Hallmarking is currently taking 5 to 10 days. The license has also been made mandatory for jewelers with a turnover of less than 40 lakhs. The burden of verification of HUID i.e. each and every jewelery item has also been put on the jewellers. If jewelers cannot complete the hallmarking by August 31, a provision has also been made to confiscate the jewellery. Along with this, there is also loss due to wear and tear of jewelery in hallmarking. There is also a provision of penalty for getting jewelery without hallmarking. Jewelers are opposing all these provisions.
According to the government, having HUID will benefit the customers. This will make it easier to identify counterfeit hallmarking jewellery. Along with this, it will be easier to take action against the erring jewelers on receiving the complaint. Jewelers have got 3 to 4 years to implement mandatory hallmarking. But still this is not being implemented. Due to this the consumer is suffering.
Investment advice by Vandana Bharti of SMC Global Securities
BUy Ref Sep @ 1440, tgt 1452, sl 1435
Buy Castor Sep @5975, tgt 6050, sl 5945
Investment Advice by Sugandha Sachdeva of Religare Broking
Buy Silver MCX Sept at 62100 sl 61400 tgt 63200
Buy Nickel at 1422 Sl 1410 Tgt 1445
Buy Copper MCX at 704 sl 699 tgt 712
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