Gold will likely continue to rule flat on Thursday as there are no factors that are seeing driving its prices higher. Signs that the employment scenario in the US improved kept the yellow metal under leash overnight.
Signs of the economy rebounding from the lows it has seen in the last couple of years are making investors courageous to invest in more riskier assets, especially equities.
However, a meeting of central banks scheduled later this month holds key as the market awaits to see if they would continue their stimulus programmes.
In early trade at Singapore, spot gold quoted a tad up at $1,580.54 an ounce, while gold for April contract ruled at $1,580.20.
In the domestic market, gold for jewellery (99.5 per cent purity) closed lower on Tuesday at Rs 29,415 for 10 gm and pure gold (99.9 per cent purity) ended at Rs 29,555 as the rupee gained against the dollar.
The Indian currency’s movement against the greenback also holds the key to gold’s movement as any rise in the rupee makes the import of commodities such as gold, crude oil and vegetable oil cheaper.
Soyabean, wheat
Oils and oilseeds complex could head lower as soyabean on the Chicago Board of Trade fell with wheat and corn. Hopes of a better harvest and a record crop beckoning in South America on good rains are also putting pressure on the complex.
Overnight on CBOT, soyabean for May contract fell to $14.66 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil for delivery in May was flat on Wednesday at 2,409 ringgit ($775) a tonne.
Wheat and corn (industrial maize) are also likely to head lower with the prices of both on CBOT slipping below the psychological mark of $7 a bushel. Wheat for May contract slipped to $6.83 a bushel, while corn to $6.88 a bushel.
Crude, rubber
A rise in US stockpiles kept the Brent crude under control. Brent for April contract quoted at $111.01 a barrel, while NYMEX crude at $90.45.
Natural rubber could stretch its gain a bit as the dollar gained against the Japanese yen. August rubber futures were up at 293 to a kg or $3,116 a tonne on the Tokyo Commodity Exchange.