While gold in the global market awaits the US employment data due later in the day, the moves of domestic spot prices of the precious metal will depend on the festival demand.

If the actual price in the global market is taken into consideration, gold currently is ruling at around Rs 26,050. But in Mumbai, pure gold (99.9%) purity ended at Rs 31,280 for 10 gm. Even if we take the 10 per cent import duty and other costs into consideration, the cost should be around Rs 29,000 but the current price shows a clear premium of over Rs 2,250.

However, the general view in the market is that the premium could begin dropping after Diwali and Dhanteras.

US Job Data

In the global market, gold is trading range-bound with an eye on the US non-farm employment data. Any sign of rise in joblessness will mean that the US could delay cutting its $85 billion-a-month stimulus programme, weakening the dollar and strengthening the yellow metal.

But that is a wishful thinking since Monday saw a huge cashing out of investors from gold exchange-traded funds. SPDR Trust, world’s biggest gold exchange-traded fund, said that holdings dropped by over 10 tonnes to 871.72 tonnes. The signs from the fund, watched closed by those who matter in the trade, are ominous.

Spot gold, gold futures

Around noon in Asia, spot gold ruled at $1,315.33 an ounce and gold futures maturing in December at $1,314.90.

In the domestic market, gold for jewellery (99.5% purity) ended at Rs 31,130 for 10 gm.

On MCX, gold contracts, to be delivered in December, could continue trading within Rs 30,000 range.

US crude stockpiles

Crude oil will likely head lower after US crude prices dropped below $100 a barrel with stockpiles rising to almost a four-month high.

Brent crude for delivery in November ruled at $109.22 a barrel and US crude for the same month at $98.89.

Soyabean, crude palm oil

With US farmers speeding up soyabean harvest and rains improving the crop outlook in Brazil, the oils and oilseeds complex could drop. But demand for US soyabean from China could cushion any sharp fall, especially with 2.35 lakh tonnes sold to an ‘unknown’ destination.

Chicago Board of Trade soyabean to be delivered in January regained the $13 a bushel level after having dropped late last night. It ruled at the $13 just before noon in Asia.

Crude palm oil for delivery in January ruled at 2,433 ringgit or $764.25 a tonne.

Corn, wheat prices

Improving weather in Argentina, raising hopes of wheat and corn (industrial maize) crops, could limit gains in the grain complex lifted by export demand and worries over Black Sea region crop.

Corn for delivery in December on CBOT ruled at $4.43 a bushel and wheat for delivery the same month was below $7 at $6.98 a bushel.

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