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Commodities are seen under pressure after an across-the-board fall on Friday in the global market. The weakening of the dollar, too, could add to the bearish sentiment.
Gold could be range-bound but on the lower side after it fell during the weekend. Improving US consumer sentiment and jobs data could force the Federal Reserve to curb its stimulus package and this, in turn, is now likely to drag the yellow metal. In the domestic market, bullion had dropped to Rs 31,125 for 10 gm on Saturday.
What could perhaps provide support to gold in the domestic market is the inauspicious period that curbed festivities and ceremonies ending on Monday. This is likely to happen only towards the later part of the week.
With grain prices plunging in the global market, the domestic market could see a similar trend, particularly with arrivals of kharif crop set to gather momentum.
On Friday, wheat on Chicago Board of Trade (CBOT) for December delivery declined over 3 per cent to $8.5675 a bushel. This could see wheat futures in the domestic futures market coming under pressure since export demand is totally lacking.
Corn December contracts on CBOT ended lower at $7.52-3/4 and this could reflect on industrial maize futures.
The oils and oilseeds market had virtually come to a halt in Mumbai on Friday, following volatility. But the bears are likely to take over after CBOT November soyabean contracts shed gains to end at $15.22-1/2 per bushel.
With Malaysia deciding to cut export tax, the market which had gone up in expectation of the move, saw profit-booking on Friday. This could continue on Monday since fundamentals, too, are loaded against any rally with palm oil stocks set to touch three million tonnes by December-end in Malaysia.
Crude oil could be range-bound caught between Syria and Turkey stand-off and fears of slowdown in economic growth.
In turn, natural rubber prices could face heat.
Sugar prices could also find the going tough to gain from the recommendations of the C. Rangarajan panel to decontrol the industry since raw sugar prices dropped by two per cent to 20.04 cents a pound. White sugar, too, had declined by a similar margin to $556.70 a tonne in London.
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