Gold is likely to gain on Wednesday in the domestic market with prices in the global market rising to its highest in one-and-a-half weeks. Assurance by the US Fed Reserve that the economy will not be squeezed of money buoyed the sentiment in the precious metals market.
The deadlock in the Italian polls is another factor keeping the yellow metal firm. Currency movements will also have a say with any rise in the rupee against the dollar making imports of commodities such as gold, crude oil and vegetable oils cheaper.
On Tuesday, the rupee slipped to 54.08 against the dollar.
In early trade at Singapore on Wednesday, spot gold quoted at $1,612.31 an ounce, while gold contracts for delivery in April ruled at $1,612.10.
Oils and Oilseeds complex
The oils and oilseeds complex could see prices being range-bound as US farmers seem to demanding higher price for soyabean. Still, soyabean ended lower on the Chicago Board of Trade (CBOT) overnight at $14.31 a bushel.
On the Bursa Malaysia Derivatives Exchange on Tuesday, crude palm oil May contracts fell to a five-month low of 2,411 ringgit per tonne ($778) a tonne.
Signs of demand improving in the US lifted corn (industrial maize), while producers insistence on better prices drove wheat up on CBOT. Overnight, wheat May contracts ended higher at $7.11 a bushel, while corn contracts for the same month quoted at $6.9475 a bushel.
Crude Oil and Rubber
Crude oil could continue to be bearish as stockpiles in the US increased. Brent April contracts were dropped to $112.89 a barrel and NYMEX crude slipped to $92.72 a barrel.
Natural rubber could drop as crude, from which synthetic rubber an alternative to natural rubber is derived, is heading lower and China still holds huge inventories.