Gold will likely rule range-bound on Thursday, with currency movements dictating terms. Overnight and in early Asian trade, gold slipped after the US Fed confirmed that it would continue its programme to pump money to keep the economy going. Still, gold’s fall was curbed by concerns over developments in Cyprus after its Parliament turned down a bailout programme.
Cyprus is looking to Russia to help tide over the financial crisis even as it is considering to nationalise pension funds.
In early trade at Singapore, spot gold ruled at $1,605, while gold futures for delivery in April were quoted at $1,604.40.
In the domestic market on Wednesday, gold for jewellery (99.5% purity) rose to Rs 29,760 for 10 gm and pure gold (99.9% purity) to Rs 29,990.
The currency market will have a say on gold’s movements as any fall in the rupee against the dollar will make imports of commodities such as gold, crude oil and vegetable oils costlier.
The oils and oilseeds complex could tend to rise after witnessing continuous fall. The counter will likely benefit from the rise in soyabean on the Chicago Board of Trade overnight. Soyabean has been gaining the last two days in view of lower Chinese inventories and shipping problems in Brazil.
On CBOT, soyabean for delivery in May quoted at $14.30 a bushel, while crude palm oil for delivery in June ruled at 2,441 ringgit ($782) a tonne on Bursa Malaysia Derivatives Exchange.
The grains complex may also head up north in sympathy with soyabean as they could fill in the demand for feed. On CBOT, wheat May contracts were up at $7.34 a bushel and corn contracts for the same month at $7.31.
Curde oil could cool a tad with a solution to the Iran nuclear programme stand-off.
Brent crude for delivery in May was quoted at $108.43 a barrel and NYMEX crude at $93.27 a barrel.