Gold prices on the spot and futures market are likely to be range-bound on Tuesday ahead of the US Federal Reserve meeting.
Besides, there could be some clues for the economy from the data on US chain stores sales and home price index besides consumer confidence. From Europe, Tuesday will see data on business climate and Germany will add its CPI and consumer confidence details.
There will be enough signals from various parts of the world for gold, including in India where the Reserve Bank of India will announce its quarterly monetary policy review that could see the interest rates remaining high.
Not until later in the day in India will the gold market get a real hold of developments. But there are enough indications of what the sentiments are though any data on lagging economic growth will support gold only for the time-being.
Further proof of what is in store for gold from reinsurer Greenlights Capital Ltd that cut its investment in gold during the quarter ended June to $50.5 million from $90.3 million.
Gold holdings in electronic format
Gold holdings in electronic formats on SPDR Trust, world’s largest exchange-traded fund for gold, were unchanged at 927.35 tonnes.
In early trade on Tuesday, spot gold in Singapore ruled at $1,328.02 an ounce and gold futures maturing in December at $1,328.10.
Spot, futures gold
In the domestic market on Monday, gold for jewellery (99.5 per cent purity) ended up at Rs 28,215 for 10 gm and pure gold (99.9 per cent purity) at Rs 28, 355.
Though Indian gold prices are up in view of the premium due to shortage, it is unlikely to last longer.
Gold futures on MCX maturing in October could trade on the lower side.
Crude oil
Crude oil is likely to head south on fears that the economic growth in the US slowed in the second quarter.
Brent crude futures maturing in September were down at $107.34 a barrel and West Texas Intermediate futures for the same month fell to $104.26.
The oils and oilseeds complex is seen heading lower further on panic sales in India and the US. Growers are now trying to sell the produce they have been holding ahead of an estimated bumper crop.
An Indian monsoon that is seeing excess rains and favourable weather in the US besides peak production season in the Far-East are all turning to be bearish.
Soyabean, crude palm oil
Chicago Board of Trade (CBOT) soyabean for delivery in November dropped to $12.13 a bushel. Crude palm oil October futures on the Bursa Malaysia Derivatives Exchange slipped to 2,162 ringgit or $668 a tonne.
The grains complex will see some gains as those who have oversold or gone short will now have to cover.
Corn, wheat futures
CBOT corn futures maturing in December were up at $4.74 a bushel. However, the street view is that it head lower towards $4.10. Wheat futures maturing in September ruled higher at $6.563 a bushel.
Rubber could see some gain as the yen’s weakness push up prices on the Tokyo Commodity Exchange. December rubber futures were up at 241.5 yen or Rs 148 a kg.