Gold is likely to come under pressure in the domestic market on Friday as global investors move away from the yellow metal in search of other assets.

US and Chinese data showed economic recovery, encouraging investors to offload their gold holdings. In particular, Chinese data showed growth despite January being a month with more holidays which analysts see as a clear sign of revival in growth.

In India, the currency movement could have a say with the rupee coming under pressure as the GDP growth is seen at a decade low of five per cent. Any rise in the dollar against the rupee is likely to make import of commodities such as gold, crude oil and vegetable oil costlier.

Gold prices

In early trade in Singapore, spot gold was quoted at $1671.85 an ounce, while gold for March contract ruled at $1,672.70.

In the domestic market on Thursday, gold for jewellery (99.5 per cent purity) gained to Rs 30,410 for 10 gm, while pure gold (99.9 per cent purity) was up at Rs 30,550.

Oils, oilseeds

Oils and oilseeds complex may gain as soyabean pared its losses on the Chicago Board of Trade (CBOT) overnight with the US Department of Agriculture data showing higher export sales last week. But the counter could be kept on leash by the projections of record harvest in Brazil and Argentina.

On CBOT, soyabean for delivery in March was quoted at $14.90. On Thursday, Bursa Malaysia Derivatives Exchange’s crude palm oil for April contract increased to 2,552 ringgit ($823) a tonne.

Grains complex

Grains complex is seen under pressure as corn fell with the Brazilian Government forecasting a record harvest, while wheat fell in sympathy besides forecast of more rains in the parched growing areas of the US.

On CBOT, corn for delivery in March slid to $7.12 a bushel and wheat to $7.58 a bushel.

Brent crude

Brent crude could rule higher as Saudi Arabia dipped into its reserves to keep its supply intact. Brent March contracts were up at $117.41 a barrel, while NYMEX crude slipped to $95.81 a barrel.

Natural rubber could drop with the key TOCOM rubber futures slipping.

(This article was published on February 8, 2013)
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