Gold will likely rule in ranges in domestic spot and futures market on Monday as it still searches for a direction.
In the global market, prices are still around $1,600 an ounce with worries over the eurozone supporting the precious metal. However, investor buying to keep their investments safe is muted. The market is likely to take cues from the manufacturing data that China is scheduled to release later in the day. Data could show that factories increased their production to the highest in 11 months.
In early Asian trade, spot gold ruled at $1,598 an ounce, while gold futures for delivery in June quoted at $1,600.
In the domestic market on Saturday, gold for jewellery (99.5% purity) ended a tad higher at Rs 29,610 for 10 gm, while pure gold (99.9% purity) closed at Rs 29,750.
Crude Oil
Brent crude oil is set to head north as Exxon Mobile Corporation has shut a pipeline that carries oil to the US Gulf coast. Data showing economic recovery is also aiding crude oil’s rise.
In early trade, Brent oil May contracts were up at $110.08 a barrel, while NYMEX crude rose to $97.28.
Oils and Oilseeds complex
The oils and oilseeds complex is seen coming under pressure from the US Department of Agriculture report that showed US stocks at 999 million bushels with farm stocks at 457 million bushels. Though lower than stocks in March 2012, they are still higher than market projections.
Chicago Board of Trade soyabean for delivery in May was down at $14.02 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil for delivery in June was down at 2,378 ringgit ($67) a tonne.
Grains complex
The grains complex will also head south as the US Department of Agriculture reported higher stockpiles of corn.
Corn (industrial maize) stocks totalled 5.4 billion bushels, 10 per cent lower from March 1, 2012 but higher than anticipated.
In early trade, corn for delivery in May slipped to $6.68 a bushel and wheat to $6.83 a bushel.