Gold could come under pressure in the global market with the dollar dropping against a basket of currencies and speculator booking profits on Monday. But the Indian market could have a different twist with the rupee tending to drop against the greenback.
A solution that is looking likely to the crisis in Greece will pin the US currency against the Euro. But with foreign investors looking to book profits on their investments in India before the year ends could see the rupee under pressure.
Any fall in the rupee will make imports costlier. Gold is no exception since demand for it is met through imports.
Asian currency markets opened with the dollar inching up.
In early trade in Singapore, gold fell. It dropped from the month high seen on Friday night to $ 1,750.54 an ounce. US gold futures for delivery in December were quoted at $ 1,750.90.
On Saturday, gold for jewellery (99.5 purity) in the domestic market zoomed to Rs 32,340 for 10 gms. Pure gold (99.9 purity) surged to Rs 32,485.
The oils and oilseeds market is likely to see a firm trend with soyabean for January delivery on the Chicago Board of Trade (CBOT) rising to $ 14.18 a bushel on Saturday.
Technically, the counter is coming off a low and demand for US beans is also driving the counter.
Malaysia palm oil could also recover after last’s weeks bearish run and drop in the dollar. Crude palm oil for February delivery on the Bursa Malaysia Derivatives Exchange closed the weekend at 2,395 ringgit ($ 783) per tonne.
Corn (industrial maize) and wheat could strengthen with the fall in the dollar and reports of short supply. The US seems to be gaining on this, while India, too, stands to gain.
CBOT corn for December delivery closed at $ 7.45 a bushel, while wheat for the same month ended at $ 8.47 a bushel.
Crude oil could tend to slip after the truce between Israel and Hamas beginning to work on the Gaza strip. Brent crude for January delivery was down in early trade at $ 111.32 a barrel, while NYMEX crude quoted at $ 88.02 a barrel.
This could see natural rubber prices come under pressure.