Gold will likely rise in the domestic market on Monday, following the rise in the global market and the dollar’s gain against a basket of currencies.
A major factor pushing gold is that investors find it cheaper to buy at four-month low.
A rise in the dollar will make imports of commodities such as gold, crude oil and vegetable oils costlier.
In early trade in Singapore, spot gold was quoted at 1,600.25 an ounce, while gold for delivery in February increased to $1,659.
In the domestic market on Saturday, gold for jewellery (99.5% purity) ended higher at Rs 30,590 for 10 gm, while pure gold (99.9% purity) increased to Rs 30,725.
The oils and oilseeds complex is likely to come under pressure after soyabean on the Chicago Board of Trade (CBOT) dropped to a six-week low on hopes of a bumper crop in South America. Though palm oil ended higher during the weekend, it also is likely to come under pressure.
Import parity will engage the minds of the domestic market.
On CBOT, soyabean for delivery in March dropped to $13.89 a bushel, while crude palm oil on Bursa Malaysia Derivatives Exchange ended at 2,495 ringgit ($819) a tonne.
The drop in soyabean could also tell on wheat and corn (industrial maize). On CBOT, corn ended lower at $6.80 a bushel, while wheat ruled at $7.47 a bushel.
Crude oil could is likely to rule lower as it opened lower in Asian trade. Brent crude for delivery in February quoted at $111.34 a barrel, while NYMEX crude quoted at $93.03.
Natural rubber is likely to gain as it opened higher on the Tokyo Commodity Exchange on hopes that US job report indicated economic recovery.