Gold seen swinging, caught amid investment demand, rising equities

| | Updated on: Apr 10, 2013
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Gold is likely to see-saw on Wednesday caught between demand for safe investment and rising equities that are attracting investors.

Japan’s policy to pump more money in the economy, thereby leading to inflation, could see investors buy gold as a bet against inflation. But the surging stock markets are always an attraction for quick returns on investments.

Gold prices

In early trade at Singapore, spot gold quoted at $1,585.94 an ounce, while gold futures maturing in June ruled at $1,585.90.

In the domestic market on Tuesday, gold for jewellery (99.5% purity) slipped to Rs 29,300 for 10 gm and pure gold (99.9% purity) to Rs 29,450.

Brent, NYMEX crude

Brent crude and West Texas Intermediate (NYMEX) crude are likely to head lower after stockpiles in the US rose to a 32-year high.

Brent May contracts ruled at $106.15 a barrel and WTI contracts for the same month at $93.93 a barrel.

Soyabean, crude palm oil

Speculation that global grain stocks are higher, likely to be confirmed by a US Department of Agriculture report, could drag oil and oilseeds complex besides gains.

Chicago Board of Trade soyabean to be delivered in May slipped overnight and was quoted at $13.92 a bushel in early Asian trade. Crude palm oil on Bursa Malaysia Derivatives Exchange ended a tad lower on Tuesday at 2,395 ringgit ($792) a tonne.

Corn, wheat prices

With Monday’s effect of China importing one million tonnes of wheat and speculation of frost damage to US winter wheat crop waning, CBOT wheat for delivery in July slipped to $7.09 a bushel. Corn for delivery in May fell to $6.42 a bushel.

Published on March 12, 2018

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