Gold prices are likely to be range-bound with the rupee’s movement against the dollar likely to decide on the yellow metal’s direction. In the global market, the precious metal was at a month’s low, searching for a direction.

With Brent crude rising to near $120 a barrel, there could be increasing demand for dollar from importing companies, leading to a drop in the rupee.

This could boost gold since any rise in the dollar will make import of commodities such as gold, crude oil and vegetable oil dearer.

Gold prices

In early trade at Singapore, spot gold traded at $1,652.50 an ounce, while gold for delivery in April quoted at $1653.50.

In the domestic market on Wednesday, gold for jewellery (99.5 purity) fell to Rs 30,255 for 10 gm and pure gold (99.9 purity) slid to Rs 30,395.

Soyabean prices

The oils and oilseeds complex could come under pressure with projections of record South America crop continuing to drag soyabean lower on the Chicago Board of Trade (CBOT). Though palm oil exports increased during February 1-10, the bearish effect of soyabean may rub on it.

On CBOT, soyabean May contracts fell to $14.095 a bushel. Bursa Malaysia Derivatives Exchange will open on Wednesday after being closed for the Chinese New Year till Tuesday.

Grains complex

The grains complex will likely decline on hopes of better corn (industrial maize) and wheat crop. In fact, corn slipped below the psychological mark of $7 a bushel.

Overnight on CBOT, corn March contracts dropped to $6.96 a bushel and wheat contracts for the same month slipped to $7.32 a bushel.

Crude oil

Crude oil is likely to flare up on geopolitical tensions especially after North Korea conducted nuclear blasts.

Brent March contracts were up at $118.69 a barrel, while NYMEX crude rose to $97.61 a barrel.

This, most probably, could see natural rubber gain since its alternative synthetic rubber derived from crude oil will rise.

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