Gold will likely rule firm in the domestic market on Friday after it rose to a month high in the global market overnight.
The dollar’s rise against Asian currencies could also see the rupee under pressure, thus providing it a support. However, US data showing recovery in the economy could curb the gains.
In early trade at Singapore, spot gold ruled at $1,687.85 an ounce after having increased to as high as $1,695.56. Gold futures for delivery in February was quoted at $1,687.45.
In the domestic market, gold for jewellery (99.5 purity) closed lower at Rs 30,550 for 10 gm on Thursday, while pure gold (99.9 purity) finished at Rs 30,685.
A rise in the dollar could make commodities such as gold, vegetable oil and crude oil costly since India imports a significant volume of these to meet its demand. On the other hand, it will make exports competitive.
Oilseeds, grains prices
With a US report showing slow demand for grains, especially for fuel, and a fall in exports, the oils and oilseeds as well as the grains complex could witness profit-booking. Look for prices to head lower.
On the Chicago Board of Trade, soyabean for delivery in March slipped to $14.30 a bushel, while crude palm oil on Bursa Malaysia Derivatives Exchange dropped to 2,379 ringgit ($792) a tonne for April contract.
Corn for delivery in March slipped to $7.24 a bushel on CBOT, while wheat contracts for the same month were down at $7.8 a bushel.
Crude oil prices
Crude oil, however, is likely to gain on positive US data. This could also see natural rubber gain since its alternative synthetic rubber derived from crude oil will rise.
Brent oil March contracts quoted at $111.10, while NYMEX crude ruled at $95.15 a barrel.