Commodities

Gold seen in ranges as buying makes up for investors’ cash-out

Our Bureau Chennai | Updated on March 12, 2018 Published on May 29, 2013

gold.jpg

Gold is likely to be range-bound on spot and futures market as it showed some signs of paring its overnight losses.

Data showing that US home prices rose last month pushed down gold overnight but the fall also brought some buyers who feel justified in purchasing at these levels. But investors outflow from the precious metal continues. This is proving to be a drag.

Gold Price

According to Bloomberg, gold assets in exchange-traded products slipped further on Monday to 2,154.2 tonnes.

In early Asian trade, spot gold quoted at $1,388.63 an ounce, while gold futures maturing in August ruled at $1,387.90.

In the domestic market on Tuesday, gold for jewellery (99.5% purity) fell to Rs 26,390 for 10 gm and pure gold (99.9% purity) to Rs 26,530.

On MCX, June contracts in gold are likely to rule between Rs 26,250 and Rs 26,000 and August between Rs 26,400 and Rs 26,800.

Currency movements will also count in a range-bound market and a weak rupee against the dollar could make imports of commodities such as gold, crude oil and vegetable oils costlier.

Crude Oil

Crude oil will likely gain on US home data but higher stockpiles are likely to rein in much of the gains.

Brent crude July contracts were up at $104.16 a barrel and West Texas Intermediate, trade on NYMEX, for the same month rose to $94.82.

Oils and Oilseeds

The oils and oilseeds complex will also gain as soyabean gained on account of more than expected rain in the US that could affect the crop and yield.

Chicago Board of Trade (CBOT) soyabean contracts expiring in July topped $15 a bushel and were quoted at $15.14 in early trade. On Bursa Malaysia Derivatives Exchange, crude palm oil for delivery in August rose to 2,413 ringgit (Rs 44,230) a tonne.

Grains complex

Corn (industrial maize) could head north as the wet weather in the US is seen affecting sowing as also plants on the field.

On CBOT, Corn contracts expiring in December, the period when the standing crop will hit the market, rose to $5.53 a bushel.

The soggy weather, on the other hand, is seen favourable to wheat. July contracts in wheat ruled at $6.93 a bushel.

US home data are also driving rubber prices up. On Tokyo Commodity Exchange, rubber November contracts were up at 274.8 yen (Rs 150) a kg.

Published on May 29, 2013
null
This article is closed for comments.
Please Email the Editor