Gold could head lower in the domestic and futures market on Monday as the bailout deal worth $13 billion for Cyprus looks likely.
The Cyprus Government and the European Union have agreed on broad outline of a deal that could see labelling of good and bad bank. Besides, the second-largest lender in Cyprus may be shut.
In early Asian trade, spot gold ruled lower at $1,609.09 an ounce, while gold futures for delivery in June quoted at $1,609.10.
In the domestic market on Saturday, gold for jewellery (99.5 per cent purity) dropped to Rs 29,690 for 10 gm, while pure gold (99.9 per cent purity) fell to Rs 29,825.
The movement of the rupee against the dollar could also have a say as any rise in the US currency will make imports of commodities such as gold, crude oil and vegetable oils costlier.
Soyabean, crude palm oil
The oils and oilseeds complex is likely to come under pressure as soyabean dropped in early trade on speculation that use of feed globally may slow. Reports of US farmers preparing to sow more are aiding the bearish trend.
In early trade, Chicago Board of Trade (CBOT) soyabean for delivery in May fell to $14.38 a bushel, while crude palm oil on Bursa Malaysia Derivatives Exchange slipped to 2,482 ringgit ($801.60) a tonne.
The grains complex will also head lower in sympathy with soyabean. CBOT corn for delivery in May dropped to $7.23 a bushel, while wheat contracts for the same month slipped to $7.27 a bushel.
Crude oil is seen heading north on the easing of Cyprus turmoil. Brent crude May contracts were up at $108.03 a barrel, while NYMEX crude at $94.06.
Natural rubber is likely to gain on rise in crude oil, from which its alternative synthetic rubber is derived, due to Cyprus deal and the yen weakened.