Gold is likely to gain marginally in the domestic market but a falling dollar could act as a dampener.

This is because prices in the global markets are tending to gain on hopes that central banks will continue to pump money into the economy to spur growth.

A falling dollar also pushed up prices but in the Indian context, a fall in US currency will make imports of commodities such as gold, crude oil and vegetable oils cheaper.

Gold prices

In early trade at Singapore, spot gold was up at $1,584.11 and gold for April contract increased to $1,583.30.

The Indonesian Palm Oil Board chief’s statement that his country’s palm oil inventories could drop by eight per cent by the year-end on demand could help keep bears’ run on the oils and oilseeds market.

Crude palm oil

In early trade, crude palm oil May contract on the Bursa Malaysia Derivatives Exchange was up at 2,384 ringgit ($767) a tonne.

On the other hand, soyabean looks to be in trouble as revised estimates peg the Brazilian crop higher. In early trade, Chicago Board of Trade soyabean for delivery in May quoted at $14.50 a bushel.

Wheat, corn prices

Short-covering in the global market is tending to lift the grains market. CBOT May wheat contracts were up at $7.18 a bushel and corn contracts for the same month at $7.09 a bushel.

Crude oil

Brent crude is likely to head south as the trade expects prices to fall. This is going by the CFTC commitments that showed that hedgers have cut their positions on the counter rising. Brent crude for delivery in April ruled at $110.56 a barrel and NYMEX crude at $90.67 a barrel.

Natural rubber could also rule flat.

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