Gold prices are likely to gain on Monday as the dollar rises but the bearish tendency in the bullion market could cap much of the gains. Bulls are likely to gain from festival buying too in the domestic market besides the marriage season purchases.

In Singapore, gold and silver fell to a month’s low with investors switching over to the US greenback as fears over global economy continue to haunt the market and equities dropped.

Gold was quoted at $1,720.21 an ounce, unchanged from Friday in the global market in early trade. Gold for delivery in December dropped to $1,721.50.

In Mumbai, gold for jewellery (99.5 per cent purity) ended at Rs 33,130 for 10 gm on Saturday. Pure gold (99.5 per cent purity) was quoted at Rs 31,275.

Edible oils are likely to come under pressure as soyabean traded on the Chicago Board of Trade (CBOT) opened lower in early trade. With investors unwinding their speculative positions and forecast of higher production in South America next year, the complex is seen under pressure. However, the gains in the dollar could cap sharper fall in the counter.

Any fall in the rupee will make imports costlier and hence, prices of commodities such as gold and edible oils that are imported on a largescale in the country could rise.

Higher palm oil stocks in Malaysia will be the other dampener.

In early electronic trade, soyabean for November delivery on CBOT was quoted lower at $15.33 a bushel.

Corn, too, saw the bears take over the counter, while wheat was unchanged on reports that Ukraine could ban exports.

However, industrial maize (corn) could be rangebound as the fall in the rupee could engage exporters. Rupee’s fall will make exports competitive and therefore, wheat and corn, in demand from buyers abroad, could profit from such a trend. In particular, any ban in Ukraine export could see Indian wheat that is available in plenty in demand for feed purpose.

In early trade, corn for December delivery dropped to $7.79 a bushel, while wheat for delivery in December was quoted at $8.72 a bushel.

U.S. November crude had fallen 52 cents to $89.53 a barrel as of 0000 GMT, after settling down $2.05 at $90.05 a barrel on Friday.

Crude oil is likely to drop and in turn, natural rubber could come under pressure.

Brent oil for delivery in December was quoted below $110 a barrel at $109.52.

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