A rise in the dollar, besides uncertainty over a solution to the Euro zone debt crisis, is likely to boost gold in the domestic market on Friday.
Overnight, the dollar gained against the euro to 1.3072 from $ 1.3121 on Wednesday after having dropped to the lowest in a month. This is set to result in the rupee also falling.
A weak rupee will make gold imports costlier and therefore, the yellow metal could gain.
The precious metal has been gaining in the last few sessions owing to a weaker rupee.
On Thurday, gold (99.5 purity), used for jewellery, ended highet at Rs 31,270 for 10 gm and pure gold (99.9 purity) closed at Rs 31,410.
The oils and oilseeds market could see a rally as soyabean and palm oil gained overnight. A strong dollar will also aid the trend.
On the Chicago Board of Trade (CBOT), soyabean surged two per cent as farmers in the US clamped down on sales and harvest began to slow. Soyabean for November delivery ended 2.4 per cent higher at $ 15.45 a bushel, while soyameal for December delivery increased to $ 463.30 a tonne.
On the other hand, Malaysian crude palm oil January contract, too, closed higher at 2,496 ringgit ($ 823) a tonne.
The rise in the greenback will make exports competitive and this is likely to help wheat and industrial maize (corn) make gains. A higher close on wheat and corn counters in the global market will likely boost the sentiment.
On CBOT, corn for December delivery was up over 2 per cent to $ 7.60 a bushel, while wheat for delivery in the same period gained almost 1.5 per cent at $8.68-1/2 a bushel.
Crude oil is likely to be range-bound with Brent and NYMEX crude ending marginally lower. Light, sweet crude for November delivery settled at $ 92.10 a barrel on the New York Mercantile Exchange, while Brent crude on the ICE futures exchange closed at $ 112.42 a barrel.
Spot and futures markets in rubber could see a mixed trend, as a result.
Sugar could continue to be under pressure with March raw sugar futures slipping to close at 19.79 cents a pound on ICE Futures US in New York. The Indian Government’s warning to sugar mills to exhaust their sugar open sale quota will also be a drag on the commodity.