Gold seen leading commodities lower
Chennai: Gold is set to lead the fall in commodities on Wednesday with the yellow metal losing its investment appeal. Elsewhere, oilseeds, vegetable oil and grains seem to be firm in the grips of bears with ample stockpiles, record crop and a likelihood of more plantings by farmers.
Gold, which hovered around $1,600 an ounce at the start of week, has taken a hit of nearly 3 per cent in two days as optimism has returned over economic recovery. Rising equities, too, are casting pressure on the yellow metal. In early Asian trade at Singapore, spot gold slipped to 1,571.55 an ounce, while gold for delivery in June was quoted at $1,576.30.
In the domestic market, gold, aided by the rise in the rupee, dropped with gold for jewellery (99.5% purity) falling to Rs 29,535 for 10 gm and pure gold (99.9% purity) closed at Rs 29,675. The rupee ended higher at 54.26 to the dollar. Any rise in the rupee against the US currency will make imports of commodities of gold, vegetable oils and crude oil cheaper.
Brent oil will likely head lower as stockpiles in the US increased to four-week high.