Gold is likely to come under pressure in the domestic futures market on Wednesday after it fell in the global market overnight. The spot market is likely to be closed in view of the all-India strike called by trade unions against soaring prices.

Signs that the economy is improving and that the US could end its stimulus dragged the yellow metal. Ending stimulus takes the gleam off gold since investors have hitherto bet on gold to overcome the effects of inflation.

Gold rates

In early trade at Singapore, gold hovered near its October low. Spot gold quoted lower at $1,607.95 an ounce, while gold for April delivery ruled at $1,607.80.

Oils and oilseeds counter is likely to be buoyed by fears that indifferent weather could have affected the soyabean crop in Argentina. Reports said that rains skipped some of the driest parts in Argentina.

Soyabean crude palm oil

On the Chicago Board of Trade (CBOT), soyabean for May contract ended higher at $14.57 a bushel, while on Bursa Malaysia Derivatives Exchange, crude palm oil for May delivery was up at 2,565 ringgit ($827) a tonne.

Grains complex could decline as corn (industrial maize) and wheat slipped on CBOT. Corn for May contract fell to $6.92 a bushel, while wheat contract for the same month slipped to $7.3875 a bushel.

Crude oil prices

Reports that the crude oil glut in the US could be cut lifted the counter, but rising supplies kept it on leash. Brent crude for April contract was up at $117.52 a barrel, while NYMEX crude contract for the same month rose to $97.13.

(This article was published on February 20, 2013)
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