Gold prices may try to wriggle out of the grips of bears on Monday as the global market looks to recover. In early Asian trade, gold was up above the psychological $1,400-an-ounce mark.
In the domestic spot and futures market, gold may try to touch levels of Rs 26,500 for 10 gm.
What could go in favour of gold at this moment is the frantic buying in Asia. The other factor that could roll out in its favour is the increase in bullish bets on gold. Speculation that various central banks’ stimulus packages could lead to inflation could also stand gold in good stead.
In early Asian trade, spot gold in Singapore was up at $1,416.99 an ounce, while gold futures maturing in June rose to $1,416.80.
In the domestic market on Saturday, gold for jewellery (99.5% purity) was stable at Rs 26,260 for 10 gm, while pure gold (99.5% purity) closed at Rs 26,395.
Crude oil is likely to be range-bound with Brent crude attempting to scaleback $100-a-barrel market. In early electronic trade in Asia, Brent crude oil June contracts were down at $99.30 a barrel, while West Texas Intermediate (NYMEX) crude for delivery in June slipped to $88.69.
The oil and oilseeds market could come under pressure owing to barge problems in the US, low export demand, fears of bird flu in China affecting feed demand and higher crop in South America.
Chicago Board of Trade soyabean May contracts fell to $13.74 a bushel, while crude palm oil July futures on the Bursa Malaysia Derivatives Exchange ended at 2,294 ringgit ($756) a tonne on Friday.
Prospects of rain in corn planting areas in the US point to delayed sowing and therefore, the grains counter could see some movement up. The same fear also grips the wheat market, resulting in prices looking up. However, other global factors such as excess wheat crop in Ukraine, Russia joining Black Sea region exports and higher plants in Argentina could curb the rise.
In early trade, CBOT corn for delivery in May rose to $6.25 a bushel, while wheat for delivery the same month was up at $7.07/bushel.