Gold is likely to be range-bound despite tending to rise in the global markets ahead of the US Federal Reserve Bank two-day meeting from today. Hopes of further stimulus from the Fed made the yellow metal rise but the dollar fell as a result.
A lower dollar leading to the rise in the rupee could see gold drop since a rising Indian currency makes imports of commodities such as gold, crude oil and vegetable oils cheaper. Also, with the Sensex ruling above 20,000 demand for the rupee from foreign investors could also result in the fall of the greenback.
In early trade at Singapore, spot gold ruled at $1,659.85 an ounce facing resistance at $1,660. Gold futures that will be delivered in April was quoted at $1,660.80.
In the domestic market on Monday, gold for jewellery (99.5 purity) closed lower at Rs 30,365 for 10 gm, while pure gold (99.9 purity) slid to Rs 30,505.
Oils and Oilseeds..
Forecast of rains in the US and projections of higher sowing of soyabean there are beginning to drag the oils and oilseeds complex. Besides, Malaysia and Indonesia have huge inventories. Therefore, vegetable oils may head south.
On the Chicago Board of Trade, soyabean for delivery in March dipped to $14.43 a bushel, while Bursa Malaysia Derivatives Exchange was closed on Monday for a holiday.
Grains complex..
The rain forecast will also likely drag the grains complex besides slow demand for wheat and corn (industrial maize).
On CBOT, wheat declined to $7.76 a bushel and corn was down at $7.27 a bushel.
Crude Oil..
Brent crude, however, could rise as US data showed rise in buying of durable goods, while oil producing nations have signalled that there will be no relief from high prices this year.
Brent crude that will be delivered in March quoted higher at $113.53 a barrel, while NYMEX crude ruled at $96.56.