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Gold prices on spot and domestic markets are likely to rule firm after a disappointing forecast in US employment.
A private forecast showed that growth in jobs was lower than forecast, leading to bets that the US jobs data due on Friday could reflect the trend. A slew of data this week have been pointing to economic growth stuttering, leading to fall in equities and haven demand for gold.
Gold could have scaled even higher this week but for two factors. One, it is facing stiff resistance at $1,275 an ounce. Two, physical buying in Asia is low in view of Chinese Lunar New Year holidays.
Gold’s further direction could be dictated by the US non-farm payroll data due on Friday.
Gold holdings in SPDR Trust, world’s biggest bullion-backed exchange traded fund, were unchanged at 797.05 tonnes.
In India, the rupee’s movement will have some effect as a weaker Indian currency against the dollar makes imports of gold, crude oil and vegetable oils costlier.
Gold futures, spot gold
Early on Thursday morning, spot gold ruled at $1,257.04 an ounce and gold contracts maturing for delivery in April at $1,257.
On NCDEX, spot gold closed marginally higher at ₹29,730 for 10 gm.
On MCX and NCDEX, gold April contracts are likely to rule around levels of ₹28,700.
Crude Oil
Crude oil is set to be range-bound because of lower US distillate stocks and current cold spell in US and Canada. However, slowing economic growth could check the advance.
Brent crude March contracts ruled at $106.18 a barrel and US crude at $97.52.
Oils and oilseeds
Hot weather in southern Brazil and rains in key growing area Mato Grasso are likely to help the oils and oilseed markets gain. On the other hand, Argentine farmers are holding back their produce in view of the peso’s fall. But higher global production will cap gains.
On Chicago Board of Trade, soyabean contracts maturing for delivery in March ruled at $13.16 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil for delivery in April was done at 2,546 ringgit or $769 a tonne at the opening.
Grains complex
Weather threatening to affect yield is set to help corn (industrial maize) gain. Wheat could head higher on short-covering and threat from cold weather in the US and Europe.
CBOT corn contracts maturing for delivery in March were up at $4.42 a bushel. Wheat contracts for the same month were quoted at $5.86 a bushel.
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