Gold prices on the spot and futures market are likely to be range-bound on Wednesday as the yellow metal is caught between speculation over the continuing of US stimulus programme and investors cashing out of their holdings.

Gold looked to stabilise after US Fed officials indicated that they could continue to pump money into the economy. A clear signal is likely later tonight when the Fed Chairman Ben Bernanke will spell out a clear policy

In early trade, spot gold ruled at $1,378.26 an ounce in Singapore, while gold futures maturing in June ruled at $1,377.

In the domestic market on Tuesday, gold for jewellery (99.5 per cent purity) rose to Rs 26,360 for 10 gm and pure gold (99.9 per cent purity) rose to Rs 26,505.

On the Multi Commodity Exchange, gold for June delivery is likely to rule between Rs 26,050 and Rs 26,150, while August contracts could trade between Rs 26,150 and Rs 26,250.

Crude oil

Crude oil is likely to cool as US inventories continue to rise. Brent crude for delivery in July ruled at $103.66 a barrel, while West Texas Intermediate (NYMEX) crude contract for the same month fell to $95.76.

Soyabean, crude palm oil

The oils and oilseeds complex is likely to head south as higher soyabean crop in South America continue to rein any rise.

In early Asian trade, July contracts fell to $14.77 a bushel, while crude palm oil on Bursa Malaysia Derivatives Exchange August contracts were up at 2,353 ringgit ($779) a tonne.

The grains complex could gain as hot weather in the US could affect the standing winter crop there.

Chicago Board of Trade wheat for delivery in July increased to $6.82 a bushel, while corn (industrial maize) July contracts were up at $6.38 a bushel.

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