Gold is likely rule steady in the domestic market on Tuesday as the global equities market crashed.
The rupee’s movement will also hold key since any rise in the Indian currency will make the import of commodities such as gold, crude oil and vegetable oils cheaper.
Overnight, equities market in the US saw the biggest drop of this year and Dow dipped below the psychological mark of 14,000. Asian stock markets also opened lower in sympathy. A strong dollar is also pegging gold lower in the global market.
However, domestically the dollar may be under pressure since foreign institutions would be keen to invest here, leading to demand for the rupee.
In early trade at Singapore, spot gold ruled at $1673.99 an ounce, while gold futures for delivery in April quoted at $1674.60.
In the domestic market on Monday, gold for jewellery (99.5 per cent purity) slipped to Rs 30,230 per 10 gm and pure gold (99.9 per cent purity) dipped to Rs 30,365.
Oils and oilseeds complex is expected to continue its rally on speculation that dry weather in Argentina will affect the yield of soyabean. Overnight, soyabean prices hit a seven-week high on the Chicago Board of Trade (CBOT).
Soyabean March contract closed at $14.88 a bushel, while on Bursa Malaysia Derivatives Exchange, crude palm oil for delivery in April closed at 2,564 ringgit ($830) a tonne.
Grains complex is set for correction as demand for export of corn (industrial maize) and wheat from the US seemed lower. This was in view of US data showing that inspection by authorities for export was lowest in almost a decade. Also, production of ethanol, produced from corn, was lower.
Corn March contract on CBOT fell to $7.34 a bushel, while wheat March contract ended lower at $7.61 a bushel.
As tension over Iran’s nuclear programme eased with Teheran coming to an understanding, crude oil eased to its lowest in a week.
Brent crude to be delivered in March was down at $115.31 a barrel, while NYMEX crude for delivery in March ruled at $96.01.
However, rising car sales is likely to see natural rubber rule firm or gain despite the easing of crude oil prices.