Gold will likely be range-bound in the domestic market on Friday as positive data from the US labour market and rising equities cap its rise. However, gold seems to be holding on speculation that the US might come up with some stimulus programme to improve the economy further.
In early Asian trade, spot gold was quoted at $1,591.70 an ounce, while gold April futures ruled at $1,588.80.
The precious metal’s steady trend saw gold-backed exchange-traded products rising to 2,471.073 tonnes on Wednesday for the first gain in the last one week.
In the domestic market on Friday, gold for jewellery (99.5% purity) slipped on Thursday to Rs 29,305 for 10 gm, while pure gold (99.9%) purity was down at Rs 29,445.
Gold dropped despite the dollar rising on Thursday. The yellow metal’s movement in the country will also depend on the dollar-rupee movement as any rise in the US currency could make imports of commodities such as gold, crude oil and vegetable oils dearer.
Oils and Oilseeds complex
The oils and oilseeds complex could head south as higher soyabean production in Brazil continues to affect the sentiments. Data showed that Brazil exported at least one million tonnes of beans more this season.
Overnight on the Chicago Board of Trade, soyabean for delivey in May fell to $14.355 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil May contracts dropped to 2,366 ringgit ($760) a tonne.
The grains complex could rise with the US wheat in demand for exports. Also, wheat has gained its premium over corn and that could put some limits in the gain it makes as the prospects for the next crop is good.
On CBOT, wheat May contracts were up at $7.2475 a bushel, while corn contracts for the same month rose to $7.165 a bushel.
Brent crude will likely heat up on signs of economy recouping. In early Asian trade, Brent crude for delivery in May was up at $108.96 a barrel, while NYMEX crude April contracts ruled at $93.28 a barrel.