Gold prices in domestic spot and futures markets are set to rise sharply on Wednesday after the global market rose to a three-week high.
Speculation that the US Federal Reserve could put off its $85 billion-a-month tapering programme to March is driving up prices of the yellow metal. US jobs data released on Tuesday night are seen signs of the US economy slackening, though 1,48,000 non-farm jobs were added last month.
In India, the premium over global prices will continue to be high in view of Dhanteras and Diwali. Traders are reporting short supply in view of imports drying up. The Finance Ministry’s reiteration that it will not lift the ban on gold coin imports has only further added fuel to surging gold prices.
An additional booster for gold is the rise in holdings in exchange-traded funds. SPDR Trust, world’s biggest gold-exchange traded funds, said holdings increased by 6.6 tonnes to 878.32 tonnes.
Spot gold, gold futures
Around noon in Asia, spot gold was up at $1,341.08 an ounce and gold contracts maturing for delivery in December at $1,340.80.
In the domestic market on Tuesday, gold for jewellery (99.5%) purity increased to Rs 31,330 for 10 gm and pure gold (99.9% purity) to Rs 31,470.
On MCX, gold December futures could top Rs 30,000.
US crude stockpiles
Increasing supplies in the US could continue to exert pressure on crude oil. The easing of geo-political tensions is also helping it to cool.
Brent crude for delivery in December ruled at $109.93 a barrel and US crude for delivery the same month at $98.12.
Soyabean, crude palm oil
Estimates of a higher crop and US Department of Agriculture rating the soyabean crop better could drag the oils and oilseeds complex. This will be despite concerns over dry weather in Argentina.
Chicago Board of Trade soyabean January contracts slipped to $12.94 a bushel. Crude palm oil on Bursa Malaysia Derivatives Exchange opened lower at 2,440 ringgit or $774.50 a tonne.
Corn, wheat prices
Reports of Russian farmers holding back wheat and traders stopping deliveries seeking higher prices are likely to support wheat prices despite Argentina projecting a higher crop.
CBOT wheat December contracts increased to $7.03 a bushel.
On the other hand, corn (industrial maize) is set to slip on the USDA raising its rating on the crop. CBOT corn ruled at $4.39 a bushel.