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Gold is likely to be volatile in the domestic spot and futures market with a bias towards the negative side. In fact, it could resume its climb-down again. This is in view of global investors cashing out from their gold holdings, fearing the bull-run is over.
The selling is exceeding the demand for physical gold, especially in India where people have tended to flock to jewellery shops to add to their family silver.
Gold prices
In early Asian trade, spot gold in Singapore was lower by over one per cent at $1,350.52 an ounce, recovering after falling nearly 2.8 per cent late in the night. Gold futures that matures in June was quoted down at $1,349.80.
In the domestic market, gold for jewellery (99.5%) purity closed Rs 25,680, while pure gold ended at Rs 25,820 for 10 gm.
Bloomberg said that gold holdings in exchange-trade products have dropped by 3.5 per cent this month to 2,364.901 tonnes.
Silver, which had gained along with gold, was down at $22.94.
Crude oil
Crude oil will also likely resume its downward journey, thrashed by investors as production in the US is at a two-decade high.
Brent crude oil that has slipped to below $100 a barrel after a long time ruled at $100.39 in early Asian trade, while West Texas Intermediate (NYMEX) quoted at $85.85.
Oils, oilseeds
The oils and oilseeds complex could see some swings on either side after soyabean in the US withstood the general sell-off trend before, in early Asian trade, it gave up its gains.
Chicago Board of Trade (CBOT) soyabean May contracts were down at $13.84 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil for delivery in July settled at 2,275 ringgit ($751) a tonne.
Corn, wheat
The grains complex is also seen lower as wheat dropped on technical sales and rising dollar, while corn (industrial maize) was a victim of profit-booking. However, farther contracts in industrial maize could gain a bit as sowing in key Midwest area in the US has been delayed due to rain.
At 7.45 IST, wheat May contracts were quoted at $7.08 a bushel, while corn was down at $6.38 a bushel.
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