Gold prices in the domestic spot and futures market are set to head south on Friday after Thursday’s gains, taking cues from the global market.

In the global market, prices, which gained temporarily on short-covering, dropped after data from the US showed that its economy had grown at a faster clip than expected.

Fed stimulus

Data on US non-farm payroll, personal income and unemployment rate, due later tonight, will provide a clear idea on how the US Federal Reserve will proceed on tapering its $85 billion-a-month stimulus programme.

Some 1.85 lakh jobs had been added last month, while unemployment rate slipped to 7.2 per cent, according to analysts.

But weak demand and higher inventories could force the US Federal Reserve to put off its tapering until March. A clear picture will be available after the Fed’s meeting on December 17 & 18.

Rupee Vs dollar

In India, supply shortage, particularly with the marriage season ahead, is pushing up the premium. Any fall in the rupee against the dollar could also affect the yellow metal since a weak Indian currency against the greenback makes import of gold, crude oil and vegetable oils costlier.

In early trade in Asia, spot gold ruled at $1,228.02 an ounce and gold futures maturing for delivery in February at $1,227.30.

Spot gold, gold futures

In the domestic market on Thursday, gold for jewellery (99.5 per cent purity) closed higher at Rs 30,825 for 10 gm and pure gold (99.9 per cent purity) at Rs 30,975.

On MCX and NCDEX, gold February contracts could continue to rule below Rs 30,000.

Crude oil stocks

Better economic growth and fall in stocks are likely to drive up crude oil prices. Brent crude for delivery in January ruled at $111.02 a barrel and US crude for the same month at $97.35.

Conducive weather conditions in South America that could help soyabean crop in Argentina and Brazil and fears that China could have finished meeting its needs could drag the oils and oilseeds market. Talk of Argentina easing its export tax on soyabean import is also putting pressure on the market.

Soyabean, crude palm oil

Chicago Board of Trade soyabean for delivery in January fell to $13.22 a bushel. Crude palm oil contracts maturing for delivery in February on Bursa Malaysia Derivatives Exchange opened lower at 2,639 ringgit or $818.5 a tonne.

With wheat production in Canada and Australia likely to be higher and the Food and Agricultural Organisation estimating a record crop, the foodgrain prices are likely to be in the grips of bears.

Corn, wheat futures

Corn (industrial maize) could also fall but it could be cushioned by rising ethanol futures and higher US exports.

CBOT wheat futures maturing for delivery in March dropped to $6.51 a bushel and corn for the same month to $4.32 a bushel.

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