If US Federal Reserve Chairman Ben S. Bernanke and Chinese trade data talked up the bullion market, Singapore could rein in gold bulls on Friday.
Still, the domestic spot and futures gold markets could be range-bound since a stiff resistance is also coming up against gold around $1,300 an ounce.
Early this morning, Singapore, one of the top countries to do business, said its economy expanded with the manufacturing and services sector rebounding. That could help banks to relax from pumping money into the economy.
Singapore’s GDP rose 15.2 per cent for the June quarter compared with the same period a year-ago. Last quarter, the growth was a meagre 1.8 per cent.
Look to profit-booking emerging late in the day if enough cues are picked up from Singapore’s numbers.
Spot, futures gold
In early trade, spot gold ruled at $1,284.58 an ounce and gold futures maturing in August quoted at $1,280.90.
In the domestic market on Thursday, gold for jewellery (99.5 per cent purity) rose to Rs 26,640 for 10 gm and pure gold to Rs 26,775. On the MCX, gold August contracts could be caught between Rs 26,050 and Rs 26,200.
Currency movements, too, could have a say in gold’s movement, though rupee paused in its recovery against the dollar on Thursday. Any rise in the greenback against the Indian currency could make import of gold, crude oil and vegetable oils costlier.
Crude oil
Crude oil, which had been surging in the last few sessions, faced pressure with support from higher jobless claims. That could still try to drag the commodity, though lower US stockpiles will cap the downside.
Brent crude for delivery in August was down at $107.70 a barrel and West Texas Intermediate crude for delivery the same month at $104.86.
The oils and oilseeds counter is also seen swinging either side as doubts are being cast over the US data pegging a higher stockpile projection in view of a record yield estimate. Mystery also shrouds the sale of 120,000 tonnes of soyabean.
Soyabean, crude palm oil
Chicago Board of Trade soyabean that will be delivered in November was a tad lower at $12.90 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil contracts maturing in September dropped to 2,356 ringgit ($743.50) a tonne.
Wheat is seen gaining from the US Department of Agriculture data that has cut the inventories by to some 83 million bushels. The drop is mainly in view of China buying over 1.2 million tonnes of wheat.
Wheat, corn contracts
CBOT wheat contracts due for delivery in September ruled at $6.82 a bushel.
But the USDA projection of a record corn crop of 13.95 bushels is set to drag corn (industrial maize). CBOT corn contracts that will be delivered in December were firm in tandem at $5.24 a bushel.
Rains in growing regions of Kerala could lift spot rubber but futures is likely to come under pressure from slipping crude oil prices. This is since synthetic rubber, derived from crude oil, will head lower.