Gold prices on the domestic spot and futures market are likely to be range-bound on Tuesday as US data on durable goods gives rise to hopes that the Fed Reserve’s stimulus package will continue.

Though gold has been flirting with $1,400-an-ounce mark over the last two days, profit-booking has been dragging it back to below that level.

US durable goods data

On Monday, the US durable goods data, which is an indicator of a longer trend, showed that orders fell for the first time in four months. It was also the biggest fall in a year.

Intentions of planned business spending on capital goods are also low, indicating that the current quarter could be not as good as it was anticipated earlier.

These give rise to speculation that the US Fed Reserve could continue its act of pumping $85-billion-a-month to resurrect the economy.

Spot gold, gold futures

In early Asian trade, spot gold ruled at $1,397.23 an ounce and gold futures maturing in December quoted at $1,397.20.

In the domestic market on Monday, gold for jewellery (99.5 per cent purity) ended flat at Rs 31,765 for 10 gm and pure gold (99.9 per cent purity) at Rs 31,920.

On MCX, October contracts could trade between Rs 31,100 and Rs 32,500.

Meanwhile, gold holdings in exchange-traded funds were unchanged at 920.13 tonnes.

Crude oil

Crude oil is set to rise as developments in Syria continue to cause concern over the West Asia situation.

Brent crude October contracts were up at $111.18 a barrel and West Texas Intermediate crude for the same month at $106.43.

Weather concerns

The oils and oilseeds complex could make further gains on Tuesday on weather concerns in the US and India.

In the US, the soyabean crop could face a weather that will be hotter than usual and rain is unlikely for the next 10 days to salvage the situation. The US Professional Farmers has already indicated that the crop will not be as huge as it had been estimated.

Late plantings are also causing concern and it has forced the US Department of Agriculture to prune its estimates thrice to 13.76 billion bushel from 14.14 in May.

Soyabean, crude palm oil

Chicago Board of Trade soyabean saw its prices gaining the most in the last three years. In early Asian trade, the bean for delivery in November was up at $13.90 a bushel.

Crude palm oil November futures on Bursa Malaysia Derivatives Exchange were up at 2,465 rinngit or $741.35 a tonne.

Corn, wheat futures

The grains complex will also gain since corn (industrial maize) is also feared to take a hit from the above normal temperatures that will prevail in the growing areas of US. Weather forecasts show that July and August will turn out to be the dries in over 76 years.

CBOT corn for delivery in December topped $5 a bushel and was quoted at $5.02.

Wheat is also seen gaining in tandem with corn. It ruled at $6.67 a bushel.

Natural rubber

Natural rubber futures could drop on the spot and futures market as the prices on benchmark Tokyo Commodity Exchange fell with the rise in the yen. Higher arrivals in Indian growing areas and clouded growth outlook could also aid the downtrend.

TOCOM January rubber futures dropped to 275.6 yen or Rs 180.50 a kg.

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