Gold is likely to rule firm on Thursday since geo-political tensions are likely to spur the global market.
Though Gold prices slipped in early trade, it is seen vulnerable to the West Asian crisis triggered by Israel’s air strikes on the Gaza strip. The dollar was down against the euro and yen marginally but was still its multi-months high against these currencies. Elections in Japan are likely to keep the yen weak.
In Singapore, Gold slipped to $ 1,723.35, while Gold futures were quoted lower at $ 1,723.70.
In the domestic market, Gold for jewellery (99.5 purity) had traded at Rs 31,775 for 10 gm during Muhurat trading on Tuesday. Pure Gold (99.9 purity) eased to close at Rs 31,925.
The oils and oilseeds complex could see a rally with Chinese traders stocking up palm oil before a new quality norm can set in from January 1. It drove Malaysia palm oil on Wednesday up by over four per cent to 2,424 ringgit ($ 792) a tonne.
Soyabean on the Chicago Board of Trade gained overnight on demand for exports from the US with increased buying by feed makers. Soyabean for January delivery ended higher at $ 14.19 a bushel. This could also help the rally.
Grains are likely to gain with corn rising on CBOT and wheat slipping. But any gain in corn (industrial maize) could help wheat gain in the domestic market in sympathy. Moreover, a higher price fixed under the open market sale scheme and export prospects are likely to keep their prices firm.
CBOT corn for March delivery increased to $ 7.2925 a bushel, wheat for March delivery slipped to $ 8.64 a bushel.
The West Asia unrest also fired up crude oil and this could see natural rubber making gains.
Brent oil, the benchmark for crude oil trade, increased to $ 109.61 a barrel in early trade for December delivery, while NYMEX crude for delivery the same month was up at $ 86.32.
Sugar is likely to see sideways movement as the global market is awash with stocks. On ICE U.S., raw sugar for March dropped to 19.24 cents a pound.
Keywords: Gold, geo-political tension, global commodities market, West Asian crisis, Israel’s air strikes on the Gaza strip, Elections in Japan, Muhurat trading, oils and oilseeds complex, Chinese traders, palm oil, Soyabean, Chicago Board of Trade, corn, industrial maize,