Overnight gains in the global markets are likely to drive gold prices on spot and futures market on Tuesday.
However, signs of recovery in the economy, leading to speculation that industrialised nations will cut their stimulus programme and investors’ paring of holdings in gold will tend to be a dampener. An indicator of low investor interest was the fall in SPDR holdings to 1,031.5 tonnes.
In the global market itself, the yellow metal began shedding its gain in early Asian trade. Spot gold in Singapore quoted at $1,388.61. Gold futures maturing in June ruled at $1,387.60.
In the domestic market on Monday, gold for jewellery (99.5% purity) fell to Rs 29,500 for 10 g and pure gold (99.9%) to Rs 26,050.
On MCX, gold June futures could touch Rs 26,000, while August futures could rise to Rs 26,100.
Crude Oil
Crude oil could gain on speculation that US stockpiles dropped again.
Brent crude July contracts were up at $103.80 a barrel, while West Texas Intermediate (NYMEX) crude ruled at $96.84.
Oils and Oilseeds
Demand for available soyabean stocks and speculation of a lower planting will continue to push oils and oilseeds complex higher.
Chicago Board of Trade (CBOT) soyabean for delivery in June was up at $14.70 a bushel. Crude palm oil on Bursa Malaysia Derivatives Exchange ended at one-month on Monday at 2,352 ($779) a tonne.
Grains Complex
The grains complex is seen coming under pressure as sowing in US corn (industrial maize) has accelerated on clear sky and warm weather.
CBOT corn for delivery in July dropped to $6.46 a bushel, while wheat contracts for the same month fell to $6.82 a bushel.