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Gold prices in domestic spot and futures market are likely to be range-bound caught between rallying equities, waning investors’ interest and rising physical demand in Asia.
After having increased 1.5 per cent on Wednesday, the yellow metal skidded in early trade on Thursday on the back of S&P index continuing to rise to record for the fifth day.
In early trade, gold fell to $1,472.34 an ounce, while gold futures that will mature in June slid to $1,471.30.
Bloomberg reported that gold holdings in SPDR Trust, world’s largest for gold, dropped to 1,051.47 tonnes on Wednesday. This is the lowest in the last four years.
In the domestic market on Wednesday, gold for jewellery (99.5% purity) dropped marginally to Rs 27,000 for 10 gm, while pure gold (99.9% purity) slid to Rs 27,145.
On MCX, gold August contracts could trade between Rs 26,900 and Rs 27,100, while June contracts could swing between Rs 26,400 and Rs 26,750.
Crude Oil
With Iraq halting exports following bombing and stocks dropping at the New York futures delivery point, crude oil could heat up marginally.
Brent crude June contracts were up a tad at $104.47 a barrel, while West Texas Intermediate (NYMEX) contracts for the same month ruled at $96.69.
Oils and Oilseeds
The oils and oilseeds complex could rise as crushers see tightening supply but a record South American crop and higher palm oil stocks could curb gains.
Chicago Board of Trade soyabean July contracts quoted at $13.91 a bushel and crude palm oil on Bursa Malaysia Derivatives Exchange slipped to 2,281 ringgit ($799.50) a tonne.
Grains complex
The grains complex could see corn (industrial maize) dropping as a US Department of Agriculture report later in the day could show higher inventory, while global production is likely to rebound. Wheat is also likely to drop in sympathy.
CBOT corn July futures slid to $6.31 a bushel, while wheat futures for the same month dropped to $7.03 a bushel.
Rubber
Natural rubber is likely to gain after Tokyo futures hit a two-month high following curbs on shipment by Thailand.
October contracts in rubber were up at 276.50 yen a kilogram.
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