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Gold will likely gain on spot and futures market on Tuesday as prices in the global market rose overnight after data showed that factory output in the US slipped for the first time in six months.
The consequent drop in the dollar, too, lifted the precious metal. In India, however, the gains will be determined to some extent by the rupee-dollar movement. A fall in the rupee, already at an 11-month low, against the greenback will make imports of commodities such as gold, crude oil and vegetable oils costlier.
Slowing sales of gold held in exchange-traded funds is also aiding the uptrend. A section of the trade is also pointing at short-covering for the rising trend.
In early Asian trade in Singapore, spot gold ruled at $1,411.45 an ounce, while gold futures maturing in August quoted at $1,410.90.
In the domestic market on Monday, gold for jewellery (99.5% purity) closed higher at Rs 27,060 for 10 gm and pure gold (99.9% purity) at Rs 27,190.
On MCX, August contracts in gold could rise to as high at Rs 27,100, while June contracts may hit Rs 27,000.
Crude oil is likely to be range-bound after it pared gains from the biggest monthly gain. A falling dollar helped cool the compled.
Brent crude for delivery in July quoted lower at $101.83 a barrel, while West Texas Intermediate crude for delivery the same month slipped to $93 a barrel on NYMEX.
The oils and oilseeds complex is set to gain further as soyabean rose on the Chicago Board of Trade (CBOT). Lower inventories and speculation that the US crop has been hit by rain lifted prices.
On CBOT, soyabean July contracts were up at $15.22, while on Bursa Malaysia Derivatives Exchange crude palm oil August contracts slipped to 2,379 ringgit (Rs 43,700) a tonne.
The grains complex could be mixed with corn facing selling pressure and wheat gaining on fears that the US crop could be lower as also the plantings. Doubts over Indian wheat production will also push up the complex.
CBOT corn for delivery in July ruled at $6.55 a bushel, while its December contracts fell to $5.54 a bushel.
Wheat July contracts ruled at $7.01 a bushel.
Natural rubber prices may also be range-bound with crude oil paring gains. Still, the overnight’s gain might reflect in prices on Tuesday.
On Tokyo Commodity Exchange, rubber November contracts were up at 262 yen or Rs 149.30 a kg.
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