Gold prices are likely to rule flat to higher on Thursday as the market is looking forward to a meeting of the European Central Bank. Prices of the yellow metal could tend to rise as the dollar has gained against a basket of currencies.

Gains or losses, either way, could be marginal in the domestic market. The rupee’s direction holds key since any fall in its value will make imports of gold, edible oils and crude oil dearer. India imports these commodities to meet its rising demand.

In early trade at Singapore, spot gold was quoted lower at $1,655.50 an ounce, while gold February futures ruled at $1,655.40.

In the domestic market, gold dropped marginally on Wednesday with the yellow metal meant for jewellery (99.5% purity) slipping to Rs 30,840 for 10 gm and the pure on (99.9%) purity dipping to Rs 31,040.

A record soyabean crop that Brazil is likely to harvest is casting shadow on the oils and oilseeds market. However, hopes of increased buying by countries such as India and China buoyed the Malaysian palm oil market on Wednesday.

Overnight on the Chicago Board of Trade (CBOT), soyabean for delivery in March declined to $13.85 a bushel. Crude palm oil March contracts on the Bursa Malaysia Derivatives Exchange rose to 2,413 ringgit ($794) a tonne.

The grains complex could see the bull’s active as the market fears that corn (industrial maize) inventories in the US may be lower following a severe drought in the Midwest.

Higher production prospects in countries such as Russia and Ukraine may keep wheat on leash but it could also gain in sympathy.

On CBOT, corn for delivery in March was up at $6.94 a bushel, while wheat for delivery the same month slipped to $7.45 a bushel.

Crude oil could head south after a US data showed rising stockpiles. Brent crude was down at $111.76 a barrel, while NYMEX crude slid to $93.20 a barrel.

This could see natural rubber under pressure as synthetic rubber, its alternative derived from crude oil, could ease.

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