Gold prices in the domestic spot and futures market are set to rise on Friday after investors abroad bet on gold following a drop in the equities market.
Hopes that physical demand will increase in Asia also lifted the precious metal.
Analysts say that investors find gold cheaper than many stocks after it dropped below $1,200 an ounce. Still, things will pan out in proper shape only next week after market participants return from New Year holidays.
US jobs data showed further strengthening of the economy and it could cast pressure on the yellow metal. Gold holdings in exchange-trade funds also continue to drop. SPDR Trust, the world’s biggest gold-backed exchange traded fund, said gold holdings dropped further to 794.62 tonnes.
Spot gold, gold futures
By mid-day in Asia, spot gold was up at $1,231.52 an ounce and gold futures for February delivery at $1,231.
On NCDEX, spot gold closed higher at Rs 29,335 for 10 gm for delivery in Mumbai. On MCX and NCDEX, gold futures for February delivery could head towards Rs 29,000.
Crude oil may fall
Concerns over the US Federal Reserve move to wind down its $85-billion-a-month stimulus programme and end of a blockage of Libyan refineries are likely to lead crude oil lower.
Brent crude for delivery in February dropped to $107.95 a barrel and US crude to $95.39.
Oils and oilseed market is likely to come under pressure on better weather prospects in South America that will be favourable for the soyabean crop.
Soyabean, crude palm oil
Chicago Board of Trade soyabean for delivery in March ruled at $12.74 a bushel. Crude palm oil futures on Bursa Malaysia Derivatives Exchange slipped below $800 a tonne again to $799.50 or 2,639 ringgit a tonne at the opening.
Corn (industrial maize) and wheat prices are likely to rule flat on projections of a record crop and carryover stocks.
CBOT wheat futures maturing for delivery in March ruled at $5.99 a bushel and corn contracts for the same month at $4.22 a bushel.