Gold is likely to rule range-bound on Friday with some bias towards the lower side with the rupee seen gaining. The Indian currency could gain as uncertainty persists over a solution to the US fiscal crisis and optimism over the United Progressive Alliance Government getting the required support in Parliament to get Foreign Direct Investment in the retail trade sector.

Any rise in the rupee makes imports cheaper, especially gold, crude oil and edible oils as India meets its rising demand by shipping in these commodities.

In early trade at Singapore, gold ruled flat at $ 1,724.56 an ounce, while gold futures for December delivery slipped to $ 1,724.90.

On Thursday, gold for jewellery (99.5 purity) declined to Rs 32,190 for 10 gm and pure gold (99.9 purity) slid to Rs 32,050.

The dollar that is the prime mover of commodity prices was down against a basket of currencies early on Friday.

Data showing lower exports of soyabean from the US could cast shadow on oils and oilseeds market on Friday. Speculation that palm oil stocks in Malaysia and Indonesia could be record, could also act as a dampener.

With imports turning cheaper, indigenous oils could also tend to cool in the domestic market on Friday.

Overnight on the Chicago Board of Trade (CBOT), soyabean for January delivery pared its early gains to end at $ 14.48 a bushel.

Crude palm oil February contracts on the Bursa Malaysia Derivatives Exchange fell to 2,386 ringgit ($782) a tonne on Thursay evening.

Though the grains complex in the global market dropped on technical correction and profit-booking, the scenario could be different in the domestic market. This is because the Government had decided to exports of an additional 2.5 million tonnes of wheat. Industrial maize (corn) is likely to rise in sympathy.

Overnight, wheat December contracts dipped to $ 8.67 a bushel, ending a seven-session rally on the CBOT. Corn contracts of the same month skidded to $ 7.5875 a bushel.

With Japan reporting a surprisingly bullish data, crude oil could heat up. In early trade, Brent January contract was up at $ 110.76 per barrel. NYMEX crude for January delivery rose to $ 88.07 a barrel.

This could see natural rubber gaining.

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