Gold prices in spot and futures markets are likely to be volatile as buying in Asia seems to be making up for investors logging out of gold-backed assets elsewhere.

Overnight, waning investors interest is showed in the drop in world’s biggest gold trust, SPDR, to the lowest since 2009. Investors now seem to bet on equities for better returns than gold that has been dropping this year after running up continuously for 12 years. On Tuesday, total holdings dropped to 1,057.79 tonnes.

In early Asian trade, spot gold fell and then rose to $1,456.97 an ounce in Singapore, while gold futures maturing in June ruled at $1,456.20 an ounce.

In the domestic market on Tuesday, gold for jewellery (99.5% purity) fell to Rs 27,150 for 10 gm and pure gold (99.9% purity) to Rs 27,290.

On MCX, gold August contracts are likely to hover between Rs 27,250 and Rs 27,500.

With US stockpiles rising to over eight-decade high, crude oil is likely to rule cool.

In early trade Brent crude June contracts ruled at $104.27 a barrel and West Texas Intermediate (NYMEX) $95.63 a barrel.

The oils and oilseeds counter is likely to be range-bound with Chinese bird flu continuing to cast its shadow in the market.

Chicago Board of Trade (CBOT) soyabean for delivery in June was down in early trade at $13.88 a bushel. Value buying saw crude palm oil on Bursa Malaysia Derivatives Exchange rise to 2284 ringgit ($769) a tonne.

With Monday night’s bull run seen to be overdone, corn (industrial maize) took a beat on Tuesday night. It continued in Asian trade on Wednesday with June contracts slipping to $6.40 a bushel.

Wheat, on the other hand, looks to gain with US winter as wheat seen taking a hit from freeze and cold weather. Wheat June contracts were up at $7.07 a bushel.

Natural rubber is likely to gain as Tokyo futures gained on yen’s weakness. China is also seen increasing its imports.

TOCOM October futures were up at 274.60 yen a kg ($2,772 a tonne) in early trade.

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