Gold is likely to rule range-bound on Monday as prices are under pressure after investors holdings continue to drop for the third month in succession. A rising dollar also cast shadow on the yellow metal.
However, in the Indian context a weaker rupee against the US dollar will make imports of commodities such as gold, vegetable oils and crude oil costlier.
In early Asian trade, spot gold dropped to $1,576.50 an ounce, while gold futures for delivery in June slipped to 1576.76.
In the domestic market on Saturday, gold for jewellery(99.5% purity) rose to Rs 29,510 for 10 gm and pure gold (99.9% purity) was up at Rs 29,650.
Brent, NYMEX crude
Brent crude and West Texas Intermediate (NYMEX) crude are likely to gain on speculator buying. In early trade, Brent crude was up at $104.45 a barrel, while NYMEX crude rose to $92.84.
Soyabean, crude palm oil
The effect of bird flu in China could begin to tell on the oils and oilseeds market with lower demand for soyameal likely to drag oils and oilseeds futures.
On Chicago Board of Trade, soyabean for delivery next month quoted at $13.76 a bushel. But there could be a silver lining, if stock of Malaysia crude palm oil drops as is projected. During the weekend, crude palm oil for delivery in June on Bursa Malaysia Derivatives Exchange was down at 2,359 ringgit a tonne ($771) on Bursa Malaysia Derivatives on April 5.
Corn, wheat prices
Talks of demand for US wheat from China lifted the foodgrain on the Chicago Board of Trade. However, projections of a record Indian crop could dampen sentiments. On CBOT, wheat for May delivery quoted at $7.07/bushel.
Bird flu incidents in China could continue to put pressure on corn (industrial maize) as it was down in early Asian trade at $6.33 a bushel.
Keywords: Gold prices, gold, global commodities market, rising dollar, US dollar, Brent crude, West Texas Intermediate, NYMEX crude, bird flu in China, oils and oilseeds market, Chicago Board of Trade, corn, industrial maize,