Gold is set to gain on domestic spot and futures markets on Monday with prices in the global market rising over one per cent in early Asian trade.
The metal is being driven up as holdings in exchange-traded funds rose for the first time in three months and wholesale inventories in the US dropped for the second consecutive month.
However, a 27 per cent drop in bets that gold will rise could cap much of the gains. The yellow metal’s movement could also be dictated, to some extent, by currency movements since any rise the dollar against the rupee makes imports of gold, crude oil and vegetable oils costlier.
Holdings of gold in exchange-traded funds of SPDR Trust that fell to 910 tonnes during the middle of last week, rose to 911.13 during the weekend.
A few data are likely to be release today but they are unlikely to have any major impact on the yellow metal.
Spot gold, gold futures
In Singapore, spot gold was up at $1,330.39 an ounce and gold futures maturing in December at $1,329.50.
In the domestic market on Saturday, gold for jewellery (99.5% purity) ended higher at Rs 28,540 for 10 gm, while pure gold (99.9% purity) closed up at Rs 28,625.
On MCX, October contracts in gold are likely to top Rs 28,000.
WTI, Brent crude
Crude oil is likely to head lower with hedge funds turning bearish on the commodity. Brent crude futures maturing in September ruled at $107.99 a barrel and West Texas Intermediate crude futures for the same month quoted at $105.92.
The oils and oilseeds counter could rule in ranges with US Department of Agriculture forecasts for the oncoming crop being a little lower than private forecasts. Threat of frost to the late-sown crops could help the counter rebound a tad.
Soyabean, crude palm oil
Chicago Board of Trade (CBOT) soyabean futures maturing in November ruled at $11.89, up marginally over weekend’s close. Crude palm oil October futures on Bursa Malaysia Derivatives Exchange opened higher at 2,230 ringgit or $690 a tonne.
Corn, wheat prices
Corn (industrial maize) and wheat are set to be pounded as prospects of US crop look good, while supplies from other sources in South America and the Black Sea region are likely to be higher.
The US is likely to harvest a 30 per cent higher crop this year, leading to a slump in corn prices to 36-month low.
CBOT corn futures maturing in December ruled at $4.54 a bushel.
Wheat is also under pressure on higher production in the Black Sea region besides the US winter crop faring well. CBOT wheat futures maturing in September quoted at $6.49 a bushel.
Natural rubber prices
Natural rubber futures are likely to rally on hopes that China could buy more with its economy stabilising.
On the Tokyo Commodity Exchange, rubber futures maturing in January were up at 263.2 yen or Rs 166 a kg.
Spot rubber prices are set to rule firm as supplies continue to be affected by transport woes in Kerala.