Gold declined on Tuesday as the rupee gained against the dollar and demand slackened amidst weak global cues.

A stalemate on US budget talks and sliding dollar dragged gold below $1,700 an ounce in the global market.

Gold for jewellery (99.5 purity) closed lower at Rs 31,210 for 10 gram and pure gold (99.9 purity) at Rs 31,345.

Traders said subdued demand at prevailing higher levels led to fall in gold prices. Gold in global market lost 1.1 per cent to $1,696.78 an ounce, the least expensive since November 6.

Mixed trend in oilseeds

The oils and oilseeds complex witnessed a mixed trend today with palm oil continuing its losing spree and soya oil turning bullish. The contract for February delivery dropped 0.8 per cent to 2,298 ringgit ($756) a tonne on the Malaysia Derivatives Exchange. Soya oil for delivery in January was little changed at 50.25 cents a pound on the Chicago Board of Trade.

Palm oil for May delivery declined 0.6 per cent to close at 6,796 yuan ($1,092) a tonne on the Dalian Commodity Exchange.

Wheat spurts

The unfavourable weather in Argentina and a cut in Australia's wheat output forecast propelled the grain counter with milling wheat, corn and soyabean gaining prices. Wheat for delivery in March rose 0.4 per cent to $8.64 a bushel after three sessions of declines. Milling wheat for delivery in January traded on NYSE Liffe in Paris crept up 0.1 per cent to 269.50 euros ($352.31) a tonne. Corn (industrial maize) for delivery in March increased 0.2 per cent to $7.5625 a bushel in Chicago. Soyabeans for January delivery on the CBOT was little changed at $14.5525 a bushel.

Worries over US fiscal deficit and weak manufacturing data kept crude oil under pressure. Brent oil slipped towards $110/barrel.

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