SEARCH

Gold may dim as equities gain on US, China data

Our Bureau
Comment   ·   print   ·  

Gold is likely to come under pressure in the domestic market on Monday as equities rose in Asia taking cues from a higher factory output in China and US jobs data showed lower unemployment rate.

The data were further boosted by retail sales in China bettering expectations. The dollar was down against a basket of currencies, all factors that determine the precious metal’s direction.

A falling dollar will drag gold prices since India depends on its imports to meet the demand. When equities gain, investors generally tend to sell off gold to put their money on stocks.

In early trade in Singapore, spot gold was unchanged at $ 1,704.31 an ounce, while gold futures ruled at $ 1,704.20.

In the domestic market on Saturday, gold for jewellery (99.5% purity) ended firm at Rs 31,005 for 10 gm, while pure gold (99.9% purity) edged up to Rs 31,140.

The oils and oilseeds complex could head lower in the domestic market following a fall in soyabean on the Chicago Board of Trade (CBOT). Profit-booking and higher stocks dampened the sentiment in soyabean.

Soyabean for January delivery on CBOT slid to $ 14.78 a bushel.

On Bursa Malaysia Derivatives Exchange, crude palm oil February contracts, on Friday, closed marginally up at 2,296 ringgit or $ 750 a tonne. 

The drop in wheat on CBOT also dragged corn (industrial maize) and wheat. Technical selling, too, turned the complex bearish. A rise in the dollar that turns exports costlier could also act as a dampener in the domestic market.

Wheat March contracts on CBOT eased to $ 8.57-3/4 a bushel, while corn for delivery in March dropped to $ 7.38 a bushel.

The positive Chinese and US data could see crude oil gain as it raises demand hopes.

Brent crude January contracts increased to $ 107.40 a barrel, while NYMEX crude looked up at $ 86.12 a barrel in electronic trade in Asia.

A higher crude oil could see natural rubber gain since its alternative synthetic rubber, derived from crude oil, will rise.

(This article was published on December 10, 2012)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.

Comments:

This article is closed for comments.
Please Email the Editor

Prices of various commodities in Chennai. ... »

Get commodities

Cereals Prices

Cotton Prices

Drug and Narcotics Prices

Fruits Prices

Jute Prices

Oil Seeds Prices

Other Prices

Pulses Prices

Rice Prices

Rubber Prices

Spices Prices

Vegetable Prices

Wheat Prices



O
P
E
N

close

Recent Article in Commodities

Speculative buying lends colour to turmeric

Hybrid and local varieties turmeric improved on Friday on speculative buying by traders, who expect prices to rise further. “The... »


Comments to: web.businessline@thehindu.co.in. Copyright © 2014, The Hindu Business Line.