Gold is likely to trade range-bound in spot and futures market on Wednesday as the trade awaits the outcome of the US presidential polls.
A victory for current incumbent Barack Obama will buoy gold since the US Fed is expected to continue its measures to resurrect economy. On the other hand, the yellow metal can lose its lustre if Mitt Romney gets to enter the White House as he is a vehement critic of the current measures of the Obama Government.
In early trade in Singapore, gold pared its overnight gains to quote at $1,710.05 an ounce.
Gold for delivery in December ruled a tad low at $1,710.30.
The dollar that also decides on the direction the precious metal takes was marginally lower with the market looking to the US polls for further direction.
It is likely that investors in the domestic market can try to book profit from the gains seen in the earlier part of the week, though festive buying could still cap any sharp fall. In Mumbai on Tuesday, gold for jewellery (99.5 per cent purity) closed up at Rs 31,150 for 10 gm, while pure gold (99.9 per cent purity) closed higher at Rs 31,350.
The oils and oilseeds market could see some heat generated on festival demand and a rebound in soyabean on the Chicago Board of Trade (CBOT). Crude palm oil could also recover on value buying.
Overnight on CBOT, soyabean for delivery in January ended higher at $15.15 a bushel after having plunged 3.5 per cent on Monday. Crude palm oil for January delivery on Bursa Malaysia Derivatives Exchange, on Tuesday, finished at 2,372 ringgit ($775 a tonne).
Wheat could gain on the heels of the grain gaining on CBOT over worries about US winter wheat that is reported to be poor. Weather playing truant in major exporting nations such as Australia and Argentina also helped the rally.
This could, in turn, help corn (industrial maize) gain as wheat for feed purpose, particularly from India, could also gain.
On CBOT, wheat for December delivery ended higher at $8.77 a bushel, while corn for delivery the same month gained at $7.43 a bushel.
Sugar and cotton are seen range-bound with the natural fibre closing a shade above 70 cents a pound on ICE U.S. Raw sugar for delivery in February finished at 19.57 cents a pound, while white sugar in London was quoted higher at $541.20 a tonne.