Comments
Gold prices are likely to rule firm on the domestic spot and futures market as the US Government shutdown looks to prolong.
The Congress is fully divided and is seeing acrimonious exchanges between the Republicans and Democrats.
Republicans Vs Democrats
The Republicans are against raising the debt ceiling without a proper debate on what is driving it. Democrats, on the other hand, are terming the Republicans stand as irresponsible, raising the prospect of a default.
The general view is that the $85-billion-a-month stimulus could continue, raising the haven appeal for gold.
However, gold holdings in exchange-traded funds remained at a four-and-a-half low. Gold holdings in SPDR Trust, world’s biggest, were unchanged at 899.99 tonnes.
Spot gold, gold futures
In early Asian trade, spot gold was up at $1,314.98 an ounce and gold futures maturing in December at $1,314.80.
In the domestic market on Saturday, gold for jewellery (99.5 per cent purity) rose to Rs 29,800 for 10 gm and pure gold (99.9 per cent purity) to Rs 29,960.
On MCX, December gold contracts could top Rs 29,500.
Crude oil prices
Crude oil is likely to drop as production in US Gulf of Mexico resumed after Tropical Storm Karen passed and worries over demand increased over US Government standoff.
Brent crude ruled at $109.14 a barrel in early trade and West Texas Intermediate at $103.39.
The oils and oilseeds complex could gain on a lower yield forecast for the US soyabean crop and problems with the plantings of soyabean in South America, especially Argentina. Demand for soyameal is also seen higher, thus pushing up prices.
Soyabean, crude palm oil
Chicago Board of Trade soyabean for delivery in November up at $13 a bushel. Crude palm oil on Bursa Malaysia Derivatives Exchange ended up during the weekend at 2,317 ringgit or $730 a tonne.
The grains complex could see some profit-booking emerging after wheat had run up higher last week. Moreover, the forecast for the Ukraine wheat crop has been raised even as investors are wondering about the demand for US wheat.
Canada, too, has raised its wheat crop estimated. It has also run a higher premium of over $2 a bushel over corn (industrial maize).
CBOT wheat for December delivery ruled at $6.88 a bushel and corn contracts expiring in December quoted at $4.42.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.