Gold will likely rule firm after the Bank of Japan’s announcement of plans to boost the Japanese economy. This is because the gold is better bet now against inflation than any other investment.
In the global market, gold was holding at one-month high. In India, any rise in the rupee that will make imports of commodities such as gold, crude oil and vegetable oils cheaper and the steep rise in prices after the Government raised the import duty to six per cent from four per cent will come into play.
Prices in the domestic market increased by over Rs 300 for 10 gm against a meager rise of around Rs 50 following the duty hike.
In early trade at Singapore, spot gold ruled firm at $1,693.85 an ounce, while gold futures quoted at $1,694.
In Mumbai on Tuesday, gold for jewellery (99.5 purity) closed higher at Rs 30,790 for 10 gm, while pure gold (99.9 purity) ended at Rs 30,925.
The oils and oilseeds complex is set for a surge with the dry weather in South America emerging a threat to soyabean crop. Demand for US soyabean is also driving up the counter.
Hopes of China building palm oil and soyabean stocks are also looking to drive up the complex.
Overnight on the Chicago Board of Trade (CBOT), soyabean for delivery in March surged to $14.51 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm rose to 2,474 ringgit ($812) a tonne on Tuesday for delivery in April.
Wheat and corn (industrial maize) will likely gain in sympathy with the rise in soyabean. On CBOT, wheat for delivery in March was quoted at $7.79 a bushel and corn for delivery the same month at $7.28 a bushel.
Crude oil will also gain on a positive sentiment generated by German data on Tuesday evening. Brent crude ruled at $112.32 a barrel for delivery in March, while NYMEX crude contracts for March closed at $96.59.