Gold prices are likely to rule range-bound on Monday, awaiting cues from markets abroad. Gold traded flat in early trade at Singapore, looking forward to data from the US that could give it direction.
The cutting of bullish bets on gold to a four-week low is a pointer that gold may be either flat or head south in the next couple of sessions. The bright spot is that demand in China may gain.
In early trade, spot gold quoted at $1,661.74 an ounce, while US gold futures for delivery in February ruled at $1,662.
In the domestic market, gold for jewellery (99.5% purity) closed lower on Saturday at Rs 30,430 for 10 gm, while pure gold (99.9% purity) ended at Rs 30,510.
The grains complex is headed for a rally as US data showed that inventories had shrunk following one of the worst drought in the US since the 1930s. This could see Indian corn (industrial maize) and wheat gain since they are likely to see export demand. A rise in the dollar will also make it competitive.
In early Asian trade, corn for delivery in March on Chicago Board of Trade ruled higher at $7.20 a bushel, while wheat, which could help fill the need for global feed demand, for delivery in March was up at $7.68 a bushel.
The oils and oilseed complex is likely to come under pressure on bulging palm oil stocks in Malaysia and China cutting its buying.
Soyabeans gained on CBOT at $13.93 a bushel for delivery in March, while crude palm on Bursa Malaysia Derivatives Exchange ended lower during the weekend at MYR 2,368 ($784.5) a tonne for delivery in March.
Crude oil may tend to be flat on global cues. Brent crude for delivery in February quoted at $110.81 a barrel, while NYMEX crude ruled at $94.08.
Natural rubber is also likely to be flat as a result.