Currency, US job report hold cues to gold; grains seen volatile

M. R. Subramani Updated - March 12, 2018 at 03:38 PM.

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Gold will likely be range-bound on Friday as the market looks to the US job report that could show joblessness dropping after data showed that the number of those who filed for employment was less in February.

Fears that central banks could end their programmes to inject more money in the economy to bolster it are also dragging the yellow metal. With equities tending to rise on signs of recovery, investors, too, seem to be shifting to more riskier assets, thus add to the bearish trend in gold.

Gold rates

In early trade at Singapore, spot gold was quoted at $1,579.25 an ounce, while gold for delivery in April ruled at $1,578.90.

In the domestic market on Thursday, gold for jewellery (99.5% purity) closed almost stating at Rs 29,425 for 10 gm, while pure gold (99.9% purity) ended at Rs 29,565.

The rupee’s rise against the dollar that makes imports of commodities such as gold, vegetable oils and crude oil cheaper also resulted in the precious metal being kept on leash.

Soyabean, Wheat

The oils and oilseeds complex is likely to be range-bound on export demand for US soyabean from destinations such as China is only for nearby contracts. Overnight on the Chicago Board of Trade, soyabean for delivery in May quoted at $14.65. March futures, however, rose to $14.94. On Bursa Malaysia Derivatives Exchange, crude palm oil May contracts ended higher on Thursday at 2,435 ringgit ($785) a tonne.

The grains complex could be a little volatile as corn (industrial maize) continues to quote higher than wheat. This could see feed demand shift to wheat until it retains it premium against corn.

On CBOT, wheat for May delivery was quoted higher at $6.77 a bushel, while corn quoted at $6.91 a bushel for delivery the same month.

Crude, Rubber

Crude oil will likely be range-bound as Brent crude fell after the North Sea pipeline was restored and NYMEX crude gain on bullish employment data.

Brent crude for delivery in April dropped to $110.77 a barrel, while NYMEX crude quoted at $91.34.

Published on March 8, 2013 03:43