Gold is likely to gain on Monday in the domestic market despite the euro ruling strong against the dollar. The yellow metal could be headed north as the yen continued to be at two-year low against the greenback.

The fiscal crisis in the US continues, threatening to automatically increases taxes there besides ushering in measures to cut spending. Nearby in Asia, data showed that Singapore’s GDP slipped in the fourth quarter and signs were strong for recession to continue.

Such signals will force investors to look for haven like gold. A rise in the dollar will also make commodities such as gold, crude oil and vegetable oil dearer since India imports significant volume of these.

In Singapore, spot gold was up at $1,660.10 an ounce and gold February futures ruled at $1,657.60.

In the domestic market, gold for jewellery (99.5 purity) edged lower on Saturday to Rs 30,435 for 10 gm, while pure gold (99.9 purity) ended at Rs 30,570.

The oils and oilseeds market are likely to be range-bound with the market looking for direction in the wake of lower domestic stocks and falling soyabean prices in the global markets. During the weekend, the domestic market tended to ignore the fall in soyabean market but when the market looks for parity, it will begin to count.

During the weekend on the Chicago Board of Trade, soyabean for delivery in January closed a tad higher a $14.24 a bushel. Crude palm oil on Bursa Malaysia Derivatives Exchange rose to 2,494 riggit ($814.50) a tonne.

The grains complex is likely to be on leash on lack of export orders, particularly for US wheat. Corn (industrial maize) is likely to follow suit.

On CBOT during the weekend, wheat March contracts were up at $7.7875 a bushel and corn March deals rose to $6.94.

Crude oil may slip as Brent crude dipped in early trade to $110.40 a barrel and New York crude to $90.65.

That could see natural rubber drop as its alternative synthetic rubber derived from crude oil will come under pressure.

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