Gold prices on spot and futures markets are likely to inch higher on Thursday as the yellow metal holdings in exchange-traded products rose after almost 10 months.
SPDR Trust, world’s largest, reported a rise in its holdings, though overall holdings in exchange-traded products are still lower. However, speculation that the US may end its stimulus package and rising dollar continue to be a drag on gold.
In early Asian trade, spot gold quoted higher at $1,395.73 an ounce, while gold futures maturing in August ruled at $1,395.90.
In the domestic market on Wednesday, gold for jewellery (99.5% purity) ended higher at Rs 29,630 for 10 gm, while pure gold (99.9% purity) finished at Rs 26,775.
On MCX, gold June contracts could top Rs 26,500, while August contracts could touch Rs 26,700.
Further movement of the rupee against the dollar will also be a crucial factor impact gold since a weaker Indian currency makes imports of commodities such as gold, crude oil and vegetable oil costlier.
Crude Oil
Crude oil could continue to be cool as US stockpiles have increased. The market seems well-balanced with the oil cartel OPEC maintaining its supply.
Brent crude July contracts were ruling at $102.60 a barrel in early Asian trade, while
West Texas Intermediate crude for the same month on NYMEX quoted at $93.17.
Oils and Oilseeds
Fears of flood in key US growing area such as Iowa and Minnesota are likely to drive oils and oilseeds counter higher on Thursday. Flood alert has put off planting by US growers and speculation is that it could have an effect on the total plantings this year.
On the Chicago Board of Trade, soyabean for delivery in July rose to $15.02 a bushel, while crude palm oil on Bursa Malaysia Derivatives Exchange opened lower at 2,382 ringgit ($774) a tonne.
Grains complex
Flood fears and delayed planting also lifted corn (industrial maize) on CBOT, while wheat continues to rule steady. Speculation is that corn planting is nearly three million hectares lower. Hopes now hinge on sowing next month where 15 million hectares will have to be covered.
On CBOT, corn December contracts were up at $5.65 a bushel, while its July contracts quoted at $6.66. Wheat July contracts ruled at $6.98 a bushel.
Higher crude oil stockpiles are likely to impact rubber prices since its alternative synthetic rubber is derived from crude oil. November contracts on the Tokyo Commodity Exchange fell to 257.6 yen or Rs 143 a kg.