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Gold could look to head higher on the domestic spot and futures market on Thursday on a weakening dollar, falling equities and data showing that employment in the US last month was lower than expected.
Concerns that the US Government shutdown could extend beyond a week could also strengthen the precious metal. The situation has become grim after US President Barack Obama refused to hold talks with influential leaders of the Congress.
Spot gold, gold futures
In early Asian trade, spot gold was up at $1,314.64 and gold futures maturing in December at $1,314.60 an ounce.
In the domestic market, gold for jewellery (99.5% purity) dropped on Wednesday to Rs 29,550 for 10 gm and pure gold (99.9% purity) to Rs 29,700.
On MCX, gold October contracts could try to regain the levels of Rs 30,000.
Crude oil prices
Crude oil is likely to head south after stockpiles in the US were up by 3.5 million barrels against expectations of a drop. Easing of geo-political tensions is also putting pressure on the commodity.
Brent crude for delivery in November ruled at $108.91 a barrel and West Texas Intermediate contracts for the same month at $103.73.
Forecast of rain in US Midwest, key growing area, could see the oils and oilseeds complex rise on Thursday. The region is seen receiving ample rains in the next five days, delaying the harvest and tightening the supplies.
Soyabean, crude palm oil
On Chicago Board of Trade, soyabean contracts maturing in November gained to $12.76 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil for delivery in December slipped to 2,317 ringgit or $716 a tonne.
Demand for US wheat and weather concerns in Argentina will lift wheat prices, while delays have been reported in sowing in Russia. There is bad news from Brazil as well with quality of arrivals being affected due to frost.
Corn, wheat prices
Corn (industrial maize) could rise in tandem in view of its discount to wheat widening.
CBOT wheat contracts to be delivered in December were up at $6.88 a bushel and corn contracts for the same month to $4.40 a bushel.
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