Gold is likely to gain on Tuesday in the domestic market in line with the global trend. In the global market, gold edged up as uncertainty prevailed over Italy’s election. This has given rise to fears that the euro zone crisis may rear its head again. That could result in demand for gold as secure investment asset.

The gains will, however, depend on the rupee’s movement against the dollar. Any rise in the greenback will make imports of commodities such as gold, vegetable oils and crude oil dearer.

In early trade at Singapore, spot gold was up at Rs 1,596.98 an ounce, while gold April contracts were up at $1,596.40.

In the domestic market on Monday, gold for jewellery (99.5% purity) ended at Rs 29,350 for 10 gm, while pure gold (99.9% purity) at Rs 29,485.

With one of the industry’s renowned personality Dorab Mistry, a director with Godrej International, painting a bearish prospect for palm oil, the oils and oilseeds counter will likely head south. Hopes of higher production are also dragging the counter and with arrivals of rabi oilseeds around the corner, prices are in for a fall.

On the Chicago Board of Trade (CBOT), soyabean May contracts declined to $14.35 a bushel, while on Bursa Malaysia Derivatives Exchange crude palm for delivery in May dropped to 2,471 ringgit ($797) a tonne on Monday.

A favourable weather for corn (industrial maize) and wheat in the American continent is putting pressure on the grains counter. Snow in US plains have boosted the prospects for a better wheat crop, while weekend rains in Argentina are seen aiding corn production.

On CBOT, corn May contracts closed at $6.855 a bushel and wheat contracts for the same month fell to $7.05.

Crude oil will also head south on speculation that stockpiles in the US increased.

Brent crude April contracts dropped to $114.07 a barrel and NYMEX crude to $92.60 a barrel.

Dropping crude and higher inventories in China will act as dampeners in the natural rubber market. Prices may rule flat.