A slew of Chinese data, including GDP growth, hold the key to the direction various commodities will take on Thursday.
Though the data are likely to show slower growth, any performance better than expected could buoy markets.
With the dollar rising to a month’s high against the Euro on hopes that Spanish bonds will not be declared junk, the rupee is likely to come under pressure. This, in turn, could lift gold as any drop in the rupee could make imports costlier.
Early on Thursday morning, spot gold was unchanged at $1,749.40 an ounce. Overnight, US gold slid marginally to $1,751.10.
On Wednesday, gold (99.5 purity), used for jewellery, gained by Rs 150 at Rs 30,950 for 10 gm. Pure gold ended at Rs 31,090.
Bargain buying might see oils and oilseed markets gaining with soyabean futures rising from a three-and-a-half month low seen on Wednesday. Soyabean for November delivery sauntered past $15 a bushel to $15.09 after languishing below the $15-mark for two days. Malaysian crude palm for delivery in January also rose on Wednesday to 2,471 ringgit ($814) per tonne.
Wheat and industrial maize (corn) could rise with any plunge in the rupee since it will make their imports competitive. Early on Thursday, wheat was static after gaining one per cent for December delivery on the Chicago Board of Trade at $8.56 a bushel. Corn December delivery slid marginally after it ended up one per cent at $7.45 1/2 a bushel on CBOT.
Crude oil prices could drop, though things could now depend on the rupee’s behaviour and the Chinese data.
Brent oil for December delivery closed lower at $113.22 a barrel, while NYMEX crude for delivery in November increased to $92.12.
This could leave natural rubber prices range-bound.
Sugar prices could be under pressure with the Union Government asking the mills to exhaust the open sale quota. It has made clear that there will be no extension of the deadline for exhausting the quota and is keen on keeping prices down.