Gold prices in the domestic spot and futures markets are likely to come under pressure this week after an over $50-gain in the global market over the last couple of sessions.
However, the market could be volatile on Monday, swinging either way before a slew of data could dictate the course for the rest of the week.
In early Asian trade, the trend was mixed with prices yo-yoing.
Fed stimulus taper
Despite last week’s rise, the overall view is that gold will continue to be under pressure on the US Federal Reserve unwinding its stimulus package and investors looking to other assets.
Factory output data
Later in the day, factory output data from Germany, Europe and the US could decide on further course for gold. Speculation is that data from the US could show that its services and factory orders increased.
During last week-end, outgoing US Federal Reserve Chairman sounded upbeat about the US economy, though he said it was not yet complete.
Spot gold, gold futures
By mid-day, spot gold was quoted at $1,242.71 an ounce and gold futures maturing for delivery in February at $1,241.90. On NCDEX, spot gold closed at Rs 29,600 during the week-end.
On MCX and NCDEX, gold February contracts are likely to top Rs 29,000 and could trade within Rs 29,500.
Crude oil prices are likely to rule flat, though later in the day they may take cues from the data due from the Western world. Brent crude for delivery in February rose to $107.02 a barrel and US crude to $94.16.
Oils and oilseeds market could trade sideways as a number of events balance one another.
While US export sales increased 31 per cent, the beginning of harvest in Brazil could put pressure on the market. Again an upgrade to last year’s US soyabean crop is being set off by a downgrade to Argentine crop.
Soyabean, crude palm oil
Chicago Board of Trade (CBOT) soyabean contracts maturing for delivery in March ruled at $12.72 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm for March delivery slipped at the open to 2,615 ringgit or $795 a tonne.
Wheat, corn futures
Wheat may gain on fears of damage to the US winter crop and purchases by Algeria and Egypt. Corn (industrial maize) could be boosted by wheat’s gains.
CBOT wheat March contracts were up at $6.09 a bushel and corn for the same month at $4.25 a bushel.