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Gold is likely to be range-bound with currency movements seen playing a decisive role in the direction the precious metal will take on Tuesday.
Prices in the global market looked up marginally on hopes that the centrals banks in the developed countries will continue to pump money to keep the economy going.
However, gold continues to rule below $1,580 an ounce and money managers are still bearish about its prospects.
Gold rates
In early trade at Singapore, spot gold was quoted at $1,578.78 an ounce, while gold April contracts ruled at $1,576.40.
In the domestic market on Monday, gold for jewellery (99.5 per cent purity) closed at Rs 29,580 for 10 gm and pure gold (99.9 per cent purity) ended at Rs 29,715.
The rupee gained marginally against the dollar and any rise of the Indian currency on Tuesday could see gold under pressure as it will make imports of commodities such as gold, crude oil and vegetable oils cheaper.
Soyabean, crude palm oil
Oils and oilseeds market could see some gains after Malaysia reported lower production in February. Prospects of record soyabean crop in South America will, however, continue to keep the complex under pressure.
On Bursa Malaysia Derivatives Exchange, crude palm oil for May delivery increased to 2,413 ringgit a tonne ($777) on Monday.
Overnight, on the Chicago Board of Trade (CBOT), soyabean for delivery in May rose to $14.62 a bushel. Soyabean gained on concerns that exports from Brazil could be delayed and it could result in demand for US beans.
Grains complex will likely head south as stockpiles in the US may end higher than the US Department of Agriculture estimates. On CBOT, wheat May contracts dropped to $7.05 a bushel, while corn contracts for the same month fell to $7.04 a bushel.
Crude oil
With a key pipeline being shut in the North Sea, Brent crude gained. Brent crude for delivery in April was up at $110.46 a barrel, while NYMEX crude rose to $90.36.
With rubber prices dropping to a two-month low, there is higher buying interest. Along with it, the rise in crude price may also drive prices up. Look for natural rubber prices to seek higher levels.
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