Gold is likely to rule steady on Wednesday, caught between rising prices of the yellow metal in the global market and a drop in the dollar value. Festival buying, on the other hand, will cap any likely fall in the precious metal.

Any drop in the dollar will make imports cheaper and exports costly.

Gold opened higher in Singapore at $ 1,711.09 an ounce but the dollar fell against the euro in the aftermath of Hurricane Sandy lashing New York.

Investors abroad will await the US Employment report later this week before taking position in gold and its products such as exchange-traded funds.

Gold for delivery in December was flat at $ 1,711.90.

In the Mumbai bullion market, gold for jewellery (99.5 purity) ended higher at Rs 30,955 for 10 gm on Tuesday. Pure gold (99.9 purity) closed up Rs 31,090.

The oils and oilseeds market is likely to be range-bound following the rise in soyabean futures on the Chicago Board of Trade (CBOT) and the dollar.

Malaysian palm oil could gain and this could help the edible oils in the domestic market gain. Soyabean for delivery in November firmed up in early trade to $ 15.35 a bushel, retaining the gains made overnight on the CBOT.  On Tuesday, crude palm oil for delivery in January on the Bursa Malaysia Derivatives Exchange declined to 2,501 ringgit or $ 820 a tonne.

Grains may be mixed on cues from the CBOT trend. Wheat for December delivery was up in early trade at $ 8.60 a bushel after slipping overnight.  Corn (industrial maize) December contracts strengthened further to $ 7.42-1/2 a bushel following up the CBOT gains.

Sugar could gain on rise in raw sugar contracts on ICE U.S. besides the fall in dollar.

Raw sugar March contracts increased to 19.54 cents a pound, while December white sugar contracts in London was up at $ 547.90 a tonne.

Crude oil is likely to gain as traders hope on demand to emerge in the after-effects of Hurricane Sandy. Also, refineries on the US East Coast and pipelines resumed operations and this could temper the rise to an extent.

Natural rubber prices are likely to cash in on any increase in crude oil.

NYMEX  crude futures for delivery in December was quoted flat at $ 85.74 a barrel and Brent ruled around $ 109.07 after paring pre-Hurricane Sandy gains.

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