Gold prices are likely to rule range-bound, looking for direction from the Bank of Japan that is set to decide on ways to boost the Japanese economy. Though India has raised the import duty on gold by two percentage points, it is unlikely to have any effect on demand. Already, the global market has ignored the impact of the duty rise, made to overcome the current account deficit.
Despite the duty hike, prices in the domestic bullion market were unchanged on Monday evening at Rs 30,415 for 10 gm of gold for jewellery (99.5% purity). Pure gold, too, was unchanged at Rs 30,555.
In early trade on Tuesday at Singapore, spot gold traded unchanged at $1,689.50 an ounce, while gold futures for delivery in February ruled at $1,689.60.
The oils and oilseeds market may gain on forecasts that soyabean imports by China will likely increase to a record 61 million tonnes in the season to September. Markets were closed in the US on Monday for a holiday.
On Bursa Malaysia Derivatives Exchange, crude palm oil for April delivery ended higher at 2,420 ringgit ($797) a tonne.
The grains complex is also likely to rule firm, looking for directions from other market. Russia’s decision to consider scrapping import duty on grains could help the market rally.
The drought effect in the US Midwest is already aiding an uptrend in the market.
Crude oil could gain after NYMEX oil rose to a four-month high. Brent crude for delivery in March was quoted at $111.71 a barrel, while NYMEX crude quoted at $95.35.