Gold set to gain on value buying, August futures set to top Rs 27,000

Our Bureau Updated - March 12, 2018 at 06:23 PM.

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Gold in spot and futures market will likely gain on Friday as investors find value in the precious metal with the European Central Bank keeping its interest rate at all-time low. The US Fed Bank’s statement to continue purchasing bonds to boost economy will also see gold investments rise.

In early Asian trade, spot gold rose to $1,474.14 an ounce, while gold futures set to mature in June were up at $1,473.40.

In the domestic market on Thursday, gold for jewellery (99.5% purity) slipped to Rs 26,905 for 10 gm and pure gold (99.9% purity) to Rs 27,040.

On MCX, gold June contracts may rise towards Rs 26,750, while August contracts will top Rs 27,000.

Crude oil will head north as the US jobs data is seen by speculators as a demand booster. Brent crude June contracts ruled at $102.70 a barrel and West Texas Intermediate (NYMEX) at $93.80.

In the domestic market, MCX crude contracts for June may test Rs 4,950 a barrel.

The oils and oilseeds counter will likely climb in sympathy with the grains complex.

Receding fears over bird flu effect in China will also aid the trend. On Chicago Board of Trade (CBOT), soyabean for delivery in July was up at $13,78 in early Asian trade, while crude palm oil on Bursa Malaysia Derivatives Exchange rose to 2,274 ringgit ($745) a tonne.

The grains complex is set to gain as corn (industrial maize) and wheat sowing in the US has been delayed due to wet weather, while last month’s cold weather has frozen the winter crop.

Wheat July contracts on CBOT were up at $7.31 a bushel and corn contracts for the same month ruled at $6.61 a bushel.

Published on May 3, 2013 03:50