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Gold prices are likely to rule steady on the domestic spot and futures market on Tuesday as the market weighs current developments.
Gold gained on Friday following US jobs data that showed employment in December was lower than even pessimistic estimates.
The data triggered some gold purchases by investors who see the US Federal Reserve going slow in paring down its stimulus programme.
While gold holdings in exchange-trade funds remained unchanged with SPDR Trust, the world’s biggest, reporting that its holdings were static at 793.12 tonnes, sales of gold coins in the US the and UK increased.
The US reported gold coin sales of 63,000 ounces on Monday, far in excess of the 56,000 ounces during the whole of December.
Still, the overall expectation is that gold could head lower since the US stimulus programme is seen as one that will have to be wound up, sooner or later.
In the domestic market, currency movements will have some effect as any rise in the rupee against the dollar will make the import of gold, crude oil and vegetable oils cheaper.
By mid-day in Asia, spot gold ruled at $1,252.05 an ounce and gold futures maturing for delivery in February at 1,251.30.
NCDEX spot gold on Monday ended at Rs 29,580 for 10 gm.
MCX and NCDEX gold futures for delivery in February are likely to continue ruling above Rs 29,000.
Crude oil prices are likely to trade in ranges with a downside bias on bets that stockpiles in the US, the world’s largest consumer, have dropped.
Brent crude for delivery in February was down at $106.79 an ounce and US crude at $92.02.
The oils and oilseeds market could rally on reports from the US that soyabean exports inspections were higher and China is looking to import more. The drag, however, could be higher Malaysian stockpiles and lower exports.
The Chicago Board of Trade soyabean for delivery in March was up at $12.94 a bushel. Crude palm oil on the Bursa Malaysia Derivatives Exchange traded lower at 2,494 ringgit or $765 a tonne.
Scepticism over US Agriculture Department data that corn (industrial maize) carryover stocks could be lower is likely to tell on its prices. Wheat could gain on higher export data.
CBOT wheat for delivery in March ruled at $5.71 a bushel and corn for the same month at $4.32 a bushel.
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