Gold will likely regain a bit of its gleam on spot and futures market as cash-out by investors has slowed and the US dollar slipped.
Not only have investors have reduced logging out of gold-traded exchange funds, funds have raised their bullish bets on gold by 35 per cent for the week ended May 28.
These factors could see gold rise, while the rupee’s movement against the dollar will also be a determining factor. The greenback’s rise against the Indian currency could make imports of commodities such as gold, crude oil and vegetable oils costlier.
In early Asian trade in Singapore, spot gold was up at $1,395.53 an ounce. Gold futures maturing in August ruled at $1,393.90.
In the domestic market on Saturday, gold for jewellery (99.5% purity) fell to Rs 26,900 for 10 gm and pure gold (99.9% purity) slipped to Rs 27,035.
On the MCX, gold for delivery in June could rise to Rs 26,900, while August contracts could top Rs 27,100.
Crude Oil
Crude oil is set to cool further as the OPEC’s decision to maintain its production has given rise to fears that inventories will rise.
Brent crude for delivery in July dropped to $100.20, while Western Texas Intermediate for delivery the same month fell to $91.19 a barrel.
Oils and oilseeds
The oils and oilseeds complex is expected to gain on Monday on fears over damage to soyabean crop in the US due to heavy rain in key-growing State.
Though there is not much fear over the loss of crop, there are concerns that the yield could take a hit. That helped Chicago Board of Trade (CBOT) soyabean to rise to $15.20 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil contracts for August were up at 2,407 ringgit ($777) a tonne.
Grains complex
The concerns over rain also helped left the corn (industrial maize) complex, while wheat was up in sympathy.
Corn for delivery in December rose to $5.70 a bushel, while wheat July contracts increased to $7.11 a bushel.
Rubber
The drop in crude oil prices is set to reflect in rubber prices since its alternative synthetic rubber, derived from crude oil products, will head south. November rubber contracts on the Tokyo Commodity Exchange dropped to 251.1 yen or Rs
Rubber declined to a one-month low as a drop in oil reduced the appeal of the commodity as an alternative to synthetic products used in tires.
Rubber for delivery in November fell as much as 2.8 percent to 251.1 yen or Rs 141 a kg.