Comments
Gold prices in the spot and futures market are likely to swing either way as demand for the oncoming Akshya Tritiya countered the yellow metal’s fall against the dollar surge.
Overnight, the US jobs data showed signs of recovery in economy, adding weight to the bearish trend.
Gold-backed investments
There was also some positive sign from investors as they increased their holdings in gold-backed investments. Gold held in electronic forms increased marginally to 2,241 tonnes, the first time in 40 days.
Spot gold in Singapore during early trade quoted at $1,460.88, while gold futures maturing in June ruled at $1,460 an ounce on the Comex.
In the domestic market on Thursday, gold for jewellery (99.5 per cent purity) ended at Rs 27,310 and pure gold (99.9 per cent purity) at Rs 27,445 for 10 gm.
Rupee Vs dollar
Thursday’s gains were basically due to the rupee’s fall against the dollar as oil companies sought more of the US currency.
Any fall in the rupee’s value against the dollar makes import of commodities such as gold, crude oil and vegetable oil costlier.
Look for June gold contracts on MCX to trade between Rs 26,950 and Rs 27,150, while August contracts could trade within Rs 27,500.
US jobs data
Though US jobs data should see crude oil turning bullish, stockpiles rising in the US to over eight-decade high is cooling the counter. Moreover, Iraq has resumed its Turkey pipeline.
In early trade, Brent crude oil June contracts were down at $104.29 a barrel, while West Texas Intermediate (NYMEX) crude fell to $96.13.
Shortage of soyabeans for immediate delivery is pushing up the oils and oilseeds counter but import of South American beans by the US could temper the rise.
Soyabean, crude palm oil
Chicago Board of Trade (CBOT) soyabean July contracts were up at $14.08 a bushel, while crude palm oil July contracts on Bursa Malaysia Derivative were up at 2313 ringgit ($774) a tonne.
Prospects of US growers planting more corn (industrial maize) due to favourable weather are putting pressure on the complex. Wheat is also swaying to that trend.
Corn, wheat futures
CBOT corn futures maturing in July ruled at $6.46. Wheat futures maturing the same month quoted at $7.21 a bushel.
Natural rubber prices are set to gain as the Japanese yen fell against the dollar. A US dollar now fetches more than 100 yen, resulting in October contracts of rubber rising mover 4 per cent. On TOCOM, they were up at 288 yen or $2,850 a tonne.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.