Profit-booking curbed gold’s rise in global markets early Tuesday but a key vote in Cyprus Parliament holds key to its further movement.
After having hit a high of $1,611 an ounce on Monday night after Cyprus decided to tax its bank account holders, gold shed its gains.
In early trade in Asia, gold was quoted at $1,603.18 an ounce in the spot market. In futures market, the April contract quoted at $1,601.80.
Fears of run-in on Cypriot banks led to haven buying by investors on Monday. Cyprus Parliament will meet in Nicosia later in the day to decide whether bank account holders could be charged a levy to mop up $7.5 billion for a bailout of the country from financial crisis.
The rupee’s movement against the dollar will also matter as any rise in the US currency makes imports of commodities such as gold, crude oil and vegetable oils costlier.
Gold rates
In the domestic market on Monday, gold for jewellery (99.5 per cent purity) rose to Rs 29,595 for 10 gm, while pure gold (99.9 per cent purity) ended higher at Rs 29,730.
The oils and oilseeds complex will continue to be under pressure as the Cyprus turmoil has added to higher production in South America.
Soyabean, crude palm oil
On the Chicago Board of Trade (CBOT), soyabean for delivery in May dropped to $14.09 a bushel. On the Bursa Malaysia Derivatives Exchange, crude palm oil for June contract dropped to 2,383 ringgit ($761) a tonne on Monday.
The grains complex, too, are seen heading south as prospects of higher wheat production looms. CBOT wheat contract for May delivery slipped to $7.12 a bushel and corn for May contract was up at $7.20 a bushel.
Crude oil basket
Crude oil looked to calm down after the fears of Cyprus. Brent crude for delivery in May quoted steady at $109.24 a barrel, while NYMEX crude May futures ruled at $94.18.