Jewellery gold could drop to levels of Rs 29,000 for 10 gm as the precious metal seems to be in the firm grip of bears in the global market.

Prices could fall even sharper, in case the rupee gains against the dollar, as any rise in the Indian currency makes import of commodities such as gold, crude oil and vegetable oils cheaper.

In general, gold is headed lower as investors’ interest in the yellow metal wanes, with holdings in investments falling to an eight-month low. Gains in the equities market is also drawing investors away from the bullion market.

Gold prices

In early Asian trade, spot gold fell below $1,550 an ounce and ruled at $1,546.30 an ounce in Singapore. Gold futures for delivery in June slipped to $1,548.50.

The yellow metal fell sharply in the domestic market on Wednesday with gold for jewellery (99.5 per cent purity) falling to Rs 29,195 for 10 gm and pure gold (99.9 per cent purity) declining to Rs 29,335.

Brent crude

Brent and West Texas Intermediate (NYMEX) crude are also headed lower on higher stockpiles in the US. In Asia, Brent May contracts dropped to $107.53 a barrel and NYMEX crude to $94.55.

The oils and oilseeds complex could rule in ranges, though there could be a tendency to seek lower levels.

Soyabean, crude palm oil

Overnight on the Chicago Board of Trade (CBOT), soyabean for delivery in May was down at $13.78/bushel as fears over disruption of bean from Brazil receded.

On Bursa Malaysia Derivatives Exchange on Wednesday, crude palm oil June contract rose to 2,396 ringgit ($778) a tonne.

Wheat, corn prices

The grains complex could be mixed with wheat gaining on fears that frost in the US may affect the winter crop. Corn (industrial maize) could fall on ample stocks and the possibility of record planting of the crop in the US this year.

CBOT wheat for delivery in May rose to $6.98/bushel and corn for delivery the same month ruled at $6.42/bushel.

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