Gold is likely to rule range-bound in domestic markets on Monday as the dollar gain against a basket of currencies. The yellow metal’s prices, however, pared gains in early trade in Singapore.
It would be a currency versus price fall tug of war in the domestic market as a rise in the dollar makes imports of commodities such as Gold, crude oil and vegetable oil costlier. On the other hand, it renders exports competitive.
The holidays for Christmas and New Year could also see dull trade as market participants look for year-end break.
In Singapore, Gold to $1,654.19, while Gold futures for delivery in February were down at $1,655.30 an ounce.
In the domestic market on Saturday, Gold for jewellery (99.5% purity) closed at Rs 30,630 for 10 gm, while pure gold (99.9% purity) ended at Rs 30,760.
Talk of further cancellation of US soyabean contracts by China continue to weigh on oils and oilseeds market. Also, take of China implementing a new quality norm for imports could keep the market bearish.
During the weekend, soyabean for delivery in January on the Chicago Board of Trade (CBOT) ended marginally up at $14.30 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil for delivery in March ended higher at 2,409 ringgit a tonne.
The grains complex could gain with the fall of the rupee. During the weekend on CBOT, corn (industrial maize) March contracts ended a tad up at $7.02 a bushel, while wheat contracts for the same month closed higher at $7.92 a bushel.
Crude oil could slip as the counter opened lower in early Asian trade. Brent crude for delivery in January was down at $108.76 a barrel, while NYMEX crude slipped to $88.51.
This could put pressure on natural rubber as its alternative synthetic rubber, derived from crude oil, will slip.