Gold is likely to gain marginally in the domestic spot and futures market after prices in the global market rose one per cent overnight.
However, the gains are unlikely to be sustained since investors seemed to be of the view that going forward, the yellow metal is likely to come under pressure.
The market is eagerly awaiting the outcome of the US Federal Reserve’s FOMC meet during December 17-18. The majority view is that the US Fed will announce tapering of its $85-billion-a-month stimulus programme in view of signs that the economy is rebounding.
President of Federal Bank of St Louis James Bullard, who has a say in the Fed policy, said that odds were in favour of tapering with the US adding more jobs that expected in November.
Barclays has asked investors to bet gold on falling after March, its target period for any reduction in Fed stimulus.
Chinese demand
The uptick for gold seems to be coming only from China where consumer buying continues.
Data from China and Japan around noon on industrial output, retail sales besides US chain store sales could shed more light on the economy.
Spot gold, gold futures
By mid-day in Asia, spot gold ruled at $1,239.75 an ounce and gold futures maturing for delivery in February at $1,239.10.
NCDEX spot gold for delivery in Mumbai closed at Rs 30,100 for 10 gm on Monday, while MCX gold for delivery in Ahmedabad at Rs 29,921.
In the domestic futures, gold for February delivery could top Rs 30,000 on MCX and NCDEX.
Crude oil stockpiles
With stockpiles in the US seen dropping for the third consecutive week, crude oil prices are likely to gain.
Brent crude for delivery in January rose to $109.55 a barrel and US crude to $97.52.
Higher exports from the US, China’s increased buying of soyabean and demand for soyameal could keep the oils and oilseeds market firm on Tuesday.
USDA estimates
Conducive weather aiding soyabean crop in South America could keep the prices on leash. The market could get further cues from the world demand and supply outlook that will be released by the US Department of Agriculture.
Chicago Board of Trade soyabean for delivery in January was up at $13.41 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil for delivery in February opened lower at 2,642 ringgit or $823.50 a tonne.
Record harvest
Wheat prices could be under pressure despite weather risks from the US since Canada and Australia are set to harvest a record crop. Corn (industrial maize) may gain marginally on short-covering.
CBOT wheat contracts due for delivery in March ruled at $6.51 a bushel and corn contracts for the same month at $4.37 a bushel.