Gold could continue to come under pressure in the domestic market after it posted its biggest one-day fall in three months. A declining rupee in the face of increasing inflation could aid the trend further since the import of the yellow metal can turn dearer.
Gold opened steady in Singapore a little higher than the one-month low it hit in the global market on Monday. Spot gold was quoted at $ 1,736.39 an ounce after slipping one per cent on Monday. US gold was flat at $ 1,738.20.
In Mumbai, gold for jewellery (99.5 per cent purity) closed at Rs 30,995 an ounce on Monday.
The rupee had closed lower at 53.01 to the dollar on Monday and could come under further pressure with the Euro slipping against the greenback due to uncertainty over Spain bail-out.
The oils and oilseeds market is likely to witness more pressure with US soyabean dropping below $ 15 a bushel on Monday on hopes of a good crop in South America and higher than expected yield in the US.
On Chicago Board Of Trade (CBOT), soyabeans for November delivery was quoted at $ 14.99-1/4 a bushel, a fall of 1.97 per cent.
However, corn and wheat are likely to benefit from rupee’s fall. Any drop in the rupee will make exports competitive and thus the counters can turn bullish. Corn for December delivery on CBOT ended up at $ 7.39-3/4 a bushel, while wheat for December delivery closed lower at $ 8.52-3/4 a bushel.
Crude oil could gain on reports of delays in North Sea production and lack of confidence in Iran agreeing to negotiate on the nuclear issue.
Brent November crude rose and settled higher at $ 115.80 a barrel. US crude for November delivery slipped to $ 91.85 a barrel.
This, in turn, could perk up natural rubber.
Sugar could be in trouble from the bears on reports that the glut situation could continue for a third year. A report said that sugar could slump to as low at 18 cents a pound.
On the ICE Futures US exchange, sugar slid to 19.85 cents a pound. It has plunged over 20 per cent this year. However, festival demand could cap the fall in the domestic market for now.