Gold prices on domestic spot and futures market are likely to rule firm on Thursday as the global market awaits a US report that may show that more jobs were offered in the week ending October 19.
The yellow metal is holding firm mainly on speculation that the US Federal Reserve will continue its stimulus programme to inject $85 billion every month to boost the economy. Gold’s gains were capped by the downswing in crude oil prices.
In the Indian context, prices and premium are seen ruling higher on demand for Dhanteras and Diwali. Besides with kharif or summer harvests in full swing and crop arrivals peaking, gold purchases in rural parts are likely to increase.
Gold holdings in world’s biggest exchange-traded fund, SPDR Trust, increased to 878.32 tonnes.
Spot gold in Singapore ruled at $1,334.09 an ounce and gold contracts maturing to be delivered in December at $1,333.90.
In Mumbai on Wednesday, gold for jewellery (99.5% purity) closed higher at Rs 31,740 for 10 gm and pure gold (99.9%) at Rs 31,890.
On MCX, gold December contracts could continue to hover around Rs 30,000.
US crude stockpiles
Crude oil could rebound on hopes of demand after prices have slipped. The US jobs data could also help it rise.
Brent crude for delivery in December quoted at $107.68 a barrel and US crude for delivery the same month at $97.29.
Soyabean, crude palm oil
With demand for US soyabean being strong, the oils and oilseeds complex could rule firm. Delay in arrivals of kharif oilseeds crop and fears of a lower-than-expected soyabean crop could also keep the market firm.
In the global market, Russia’s purchase of 1,20,000 tonnes of soyabean from the US boosted sentiments.
Chicago Board of Trade (CBOT) soyabean for delivery in January ruled at $13.07 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil, also for January delivery, closed higher at 2,482 ringgit or $785 a tonne.
Corn, wheat prices
The grain complex could also see a firm undertone with a weak dollar boosting prices. Also, the discount for corn (industrial maize) could lead to shift from wheat for feed purposes.
CBOT wheat for delivery in December ruled firm at $7.04 a bushel and corn for delivery the same month at $4.42 a bushel.