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Gold may get a bit of its shine on the spot and futures market as buyers find the drop in its prices tempting. But with more investors cashing out of gold products and the dollar tending to gain, prospects for the yellow metal are clouded.
In early Asian trade, spot gold was up marginally at $1,426.69 in Singapore. Gold futures maturing in June were up a tad at $1,425.30.
In the domestic market on Tuesday, gold for jewellery (99.5 per cent purity) was quoted at Rs 27,030 for 10 gm, while pure gold (99.9 per cent purity) ended at Rs 27,155.
On MCX, June contracts may hit Rs 26,700, while August series may touch Rs 27,100.
Currency movements, too, will count since any rise in the dollar against the Indian rupee will make imports of commodities such as gold, vegetable oils and crude oil.
Meanwhile, holdings of gold in electronic form have dropped to 2,219.71 tonnes.
Crude seen cool
A probe instituted in Europe against oil companies for manipulation of prices and an eight-decade high inventory will keep crude oil prices under leash.
Brent crude June contract ruled at $102.71 a barrel, while West Texas Intermediate (NYMEX) crude for the same month quoted at $94.33.
Vegoils may rule steady
Ports strike in Brazil affecting the supplies of soyabean from the South American nation, which is expected to be the largest exporter of the oilseed this year, is likely to keep the oils and oilseeds market steady.
But data showing declining imports by India, the second largest importer, could weigh on the market or curb sharp gains in the market. The trend was evident in early Asian trade as crude palm oil contracts fell.
Chicago Board of Trade (CBOT) soyabean for July delivery was up at $14.12 a bushel, while crude palm oil for July contract on the Bursa Malaysia Derivatives Exchange slipped to 2281 ringgit ($763) a tonne.
The grains complex is likely to rule at the current levels with lower plantings in the US providing support to the counter.
Wheat, corn prices
CBOT July wheat contracts were a tad lower at $7.08 a bushel, while corn contracts for the same month quoted at $6.51 a bushel.
Rubber prices could fall as futures prices on the Tokyo Commodity Exchange dropped taking cues from crude oil since synthetic rubber, derived from crude oil, will turn cheaper. Rubber October contracts dropped to 283 yen a kg Rs 151.80.
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