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Gold prices in spot and futures market are set to rise on Wednesday after the thrashing it had undergone in the last three sessions.
Traders feel the precious metal has fallen too much and too soon. Speculation that some central banks may buy gold at these prices also lifted the sentiment.
Boston blasts
The blasts in Boston, US, have perhaps boosted gold since it is seen as a safe bet during times of such crisis.
In early trade at Singapore, spot gold was quoted up at $1,377.57 a troy ounce, while gold futures set to mature in June ruled at $1,374.60.
Gold prices
In the domestic market on Tuesday, gold for jewellery (99.5% purity) closed at Rs 25,900 for 10 gm, while pure gold (99.9%) purity ended at Rs 26,044.
Prices could rise above Rs 27,000 in Wednesday’s trade. However, gold’s final margin of rise will depend on how the rupee fares against the dollar.
Any fall in the Indian rupee against the US currency will make the import of commodities such as gold, crude oil and vegetable oil cheaper.
Crude oil
Crude oil could in all likelihood rebound after data showed that US stockpiles dropped.
In early trade, Brent crude oil for June contract was quoted higher at $100.39 a barrel and West Texas Intermediate or NYMEX crude at $89.09 a barrel in electronic trading on the New York Mercantile Exchange and was at $88.83.
Oils, oilseeds
The oils and oilseeds counter may rear up its head as the global market recovered on Tuesday night with speculators viewing Monday’s action as being overdone.
Chicago Board of Trade soyabean for delivery in June recovered to above $14 a bushel but in early Asian trade, it slid to $13.78.
On Bursa Malaysia Derivatives Exchange, crude palm oil for July contract closed at 2,301 ringgit ($757) a tonne.
Corn, wheat
The grains complex is also likely to look up, particularly with the US Department of Agriculture saying that 36 per cent of the winter crop is in good shape.
During the same time last year, 69 per cent of the crop was in fine shape. Also, wet weather is delaying corn (industrial maize) plantings in the key US Midwest area.
Corn for May contract of CBOT that topped $6.5 a bushel in late US trade were quoted at $6.39 a bushel in early Asian trade. Wheat contracts for the same month were firm at $7.09 after their recovery in overnight trade.
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