Gold is likely to rule range-bound on Tuesday with value-buying by customers and investors likely to slow down.
Data from SPDR Gold Trust, world’s largest gold exchange traded fund, continued to show waning investor interest. Investors’ holdings dropped by over three tonnes on Monday to 1,080.64 tonnes from Friday. A Bloomberg report said that exchange traded funding in gold dropped 168.22 tonnes this month.
The drop in investor holdings in gold funds is a clear indication that gold’s recovery since slipping to $1,321 an ounce has not won back investors confidence yet. The recovery has been mainly led by physical gold buyers in Asia.
In such circumstances, June contracts on MCX could drop to levels of Rs 27,000, while August futures may slip to Rs 27,500 for 10 gm.
In early Asian trade, spot gold slipped to $1,472.52 an ounce in Singapore, while gold futures maturing in June dropped to $1,471.80.
Crude oil is likely to gain as equities make their way up in global markets. A rise in US inventories could, however, cap sharp gains.
In early trade, Brent crude June contracts quoted at $103.70 a barrel, while West Texas Intermediate (NYMEX) crude contracts for the same month ruled at $94.33.
A delay in corn (industrial maize) planting is pushing up the grains complex, leading to soyabean gaining. This could see the oils and oilseeds complex looking up on Tuesday.
Chicago Board of Trade (CBOT) soyabean July contracts rose to $14.12 a bushel, while crude palm oil on the Bursa Malaysia Derivatives Exchange that dropped to 2,277 ringgit ($751) a tonne on Monday could also rise.
The grains complex could head further up north with CBOT corn gaining on US report showing adverse weather conditions affecting sowing in key areas such as the Mid-west.
CBOT corn July contracts rose to $6.66 a bushel, while wheat contracts for the same month were up at $7.19 a bushel.