Gold will likely gain on Monday as prices in the global market is headed towards $1,700 an ounce. The yellow metal’s price rose in the global market on hopes of the US announcing further stimulus measures.
Silver, too, could gain as it trader near month’s high in the global market.
The rupee’s performance against the dollar is unlikely to have a say in gold’s movement on Monday since the yellow metal has been on a slide during the last 3-4 sessions. Still, any major rise in the rupee that makes imports of commodities such as gold, crude oil and vegetable oils, could stop gold from rising much or even gaining.
In early trade at Singapore, spot gold increased to $1,691. Gold futures for delivery in February quoted higher at $1,690.40.
In the domestic market on Saturday, gold for jewellery (99.5 purity) declined to Rs 30,415 for 10 gm and pure gold (99.9 purity) slid to Rs 30,555.
The oils and oilseeds complex is likely to rule firm on weather concerns in South America. Lower stocks and demand for US soyabeans are also likely to aid the complex, while Malaysia palm oil is seen steady on expectations that India will begin buying more now from it after imposing 2.5 per cent duty on crude palm oil.
During the weekend, soyabean for delivery in March closed at $14.29 a bushel on the Chicago Board of Trade, while crude palm oil March contracts on Bursa Malaysia Derivatives Exchange ender higher at 2,400 ringgit ($797) a tonne.
Wheat and corn (industrial maize) are also seen ruling steady to firm on reports of the US Midwest still suffering from effects of the worst drought in eight decades.
During the weekend, wheat on CBOT for delivery in March rose to $7.89 a bushel, while corn climbed to $7.28 a bushel for March contracts.
Crude oil is seen slipping on concerns over slow economic growth. Brent crude March contracts slipped to $111.64 a barrel, while NYMEX crude for the same month slipped to $95.77.