Gold is likely to make some headway with the dollar gaining against other currencies on Friday. In early trade, the dollar gained against the yen and Euro as jobless claims in the US dropped to a three-week low and manufacturing data showed recovery in the economy. However, the greenback was down against the UK pound.
Any rise in the dollar against the rupee will make imports costlier and this along with festival demand could buoy the yellow metal.
In Singapore, spot Gold quoted at $ 1,715.59 an ounce, while US Gold for delivery in December was unchanged at $ 1,716.40.
In the domestic market, Gold for jewellery (99.5% purity) closed higher at Rs 31,395 for 10 gm, while pure Gold (99.9% purity) ended at Rs 31,260.
The oils and oilseeds market is also seen heating up as soyabean on the Chicago Board of Trade (CBOT) closed for the third consecutive session. Besides, a firm US greenback will aid the uptrend. Festival demand is another factor to support any rally.
Overnight, soyabean for delivery in January closed higher on CBOT at $ 15.58 a bushel.
Crude palm oil for January delivery increased to 2,537 Malaysian ringgit or $831 a tonne on the Bursa Malaysia Derivatives Exchange on Thursday.
The grains complex could be mixed as wheat increased on supply concerns on CBOT, while corn slid as profit booking set in the counter.
A rise in the dollar will render exports uncompetitive and this could reflect in wheat and industrial maize (corn) being range-bound.
On CBOT, wheat for delivery in December closed up at $ 8.68-1/2 a bushel and corn for delivery the same month was quoted lower at $ 7.51 a bushel.
Crude oil is likely to gain on a surprise drop in US stockpiles and economic data showing better growth. This could influence natural rubber prices in spot and futures markets to gain in tandem.
NYMEX crude was quoted near $ 87 a barrel while Brent crude in London that is the benchmark for global oil prices, was a tad lower at $ 108.17 a barrel.
Sugar, despite festival demand, could be under pressure as raw sugar for March delivery slid to 19.38 cents a pound on ICE U.S. and white sugar in London ruled lower at $ 539.20 a tonne.
Keywords: Gold, global commodities market, dollar, recovery in economy, yen, Euro, oils and oilseeds market, soyabean, Chicago Board of Trade, edible oils, Corn, industrial maize, sugar, rubber prices, crude oil, US stockpiles and economic data, Bursa Malaysia Derivatives Exchange, global oil prices