Gold prices on domestic spot and futures market could rule marginally lower as data from the US showed that home sales increased in August, point to signs of some recovery in the economy.
This could support a cut in the US $85-billion-a-month stimulus programme by the US Federal Reserve, probably next month.
Though traders have turned bullish on gold, Societe Generale said it remained bearish on gold. Back home, the Finance Ministry’s officials will meet today to end the impasse on gold imports that have been affected since the RBI came up with a notification in July-end. The notification said at least 20 per cent of gold imported into the country should be exported.
The decision of the US Fed to defer tapering the stimulus package has brought back some investors to gold. Gold holdings in SPDR Trust, world’s largest exchange-traded fund, increased to 912 tonnes.
Gold prices
In early Asian trade, spot gold slipped to $1,362.54 an ounce and gold futures maturing in December to $1,362.60.
In the domestic market on Thursday, gold for jewellery (99.5% purity) rose to Rs 30,280 for 10 gm and pure gold (99.9% purity) to Rs 30,430.
On MCX, gold October contracts could trade in ranges and below Rs 30,100.
Crude stockpiles
With Syrian oilfields resuming operations and its President Bashar al-Assad agreeing to inspection of chemical weapons facilities, crude oil supplies worries have eased.
This should see prices dropping.
Brent crude contracts maturing in November fell to $108.49 a barrel and West Texas Intermediate crude contracts for the same month to $106.08.
Though the US has won record 22.8-million-tonne order for soyabean exports, prospects of further rains in the growing area, boosting the crop, could drag the oils and oilseeds complex. Higher Indian kharif oilseeds harvest and start of peak palm oil production season are other bearish factors.
Soyabean, crude palm oil
Chicago Board of Trade soyabean contracts that will be delivered in November dropped to $13.33 a bushel. Crude palm oil on Bursa Malaysia Derivatives Exchange for delivery in December opened lower at 2,311 ringgit or $730 a tonne.
Signs that demand for US wheat in the export market is increasing and lower plantings in corn (industrial maize) could drive the grains complex higher.
Some 700,000-tonne orders for US wheat is seen as bullish. Rains forecast in the corn-growing areas are seen as a factor that may not help the crop any further, unlike in soyabean.
CBOT corn for delivery in December ruled at $4.57 a bushel and wheat for delivery the same month to $6.56 a bushel.