Gold prices on spot and futures markets are likely to come under pressure on Tuesday as the equities market look to be more appealing. Asian stock market rebounded and the Indian equities market regained 20,000 on Monday, attracting investors’ interests.
Talk of the US economy rebounding and further paring of holdings in gold-backed exchanged traded funds are further pointers of the yellow metal’s prospects being a little dim.
The rise in the dollar, though, could cushion the fall as its rise against the rupee makes imports of commodities such as gold, crude oil and vegetable oil costly. This, in fact, could see gold rise marginally in the domestic market on Tuesday.
In early Asian trade, spot gold was down at $1,392.21 an ounce, while gold futures maturing in August ruled at $1,390.70.
In the domestic market on Monday, gold for jewellery (99.5% purity) ended at Rs 26,480 and pure gold (99.9% purity) at Rs 26,630for 10 gm.
On MCX, gold June contracts could top Rs 26,500, while August contracts may touch Rs 27,700. On the lower side they could see Rs 26,350 and Rs 26,500 respectively.
Crude Oil
Crude oil will likely continue to head south on projections that global demand will be weak.
Brent crude July contracts slipped to $102.64 a barrel in early Asian trade, while West Texas Intermediate fell to $93.71 on NYMEX.
Oils and Oilseeds
The oils and oilseeds complex could heat up on China buying soyabean and hopes of demand rising for the oncoming Islamic holy month of Ramadan.
Chicago Board of Trade (CBOT) soyabean contracts for delivery in July rose to $14.83 a bushel, while crude palm oil on Bursa Malaysia Derivatives Exchange opened lower at 2,376 ringgit ($783) a tonne.
Grains complex
Chinese buying is also seen keeping the grain complex firm. CBOT wheat for delivery in July gained at $6.97 a bushel, while corn (industrial maize) rose to $6.59 a bushel.
Rubber prices, on spot and futures, are likely to be range-bound. On Tokyo Commodity Exchange, October rubber contracts ruled at 265.7 yen a kg (Rs 145.30).