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Gold will likely be range-bound on Tuesday as the market looks for cues for further direction.
While signs of economic recovery in the US are making investors shed their reservations in betting on riskier assets, Chinese data on growth are not encouraging either.
Also, with bets on bullishness in commodities dropping to a four-year low, there is reluctance to generally invest in futures market.
Gold rates
In early trade at Singapore, spot gold ruled at $1,582.30 an ounce, while gold for April contract was quoted at $1,581.60.
In the domestic market on Monday, gold for jewellery (99.5 per cent purity) ended a tad higher at Rs 29,315 for 10 gm, while pure gold (99.9 per cent purity) closed at Rs 29,455.
The marginal rise was despite a rising rupee that makes imports of commodities such as gold, vegetable oils and crude oil cheaper.
Soyabean, crude palm oil
The oils and oilseeds counter could come under pressure as soyabean on the Chicago Board of Trade (CBOT) dropped as Brazilian beans seems to be attracting buyers.
Enquiries for export of US soyabean is reported to have dropped by half compared with the same period a year ago. A drop in Malaysian palm oil stocks could, however, cap the fall.
On CBOT, soyabean for May contract was down at $14.69 a bushel. On Bursa Malaysia Derivatives Exchange, crude palm oil for delivery in May ended higher at 2,450 ringgit ($787) a tonne on Monday.
Corn, wheat prices
The grains complex could also drop in the footsteps of benchmark soyabean, though corn (industrial maize) continues to rule higher than wheat.
On CBOT, wheat for May contract was down at $6.99 a bushel, while corn contract for the same month was down at $7.0875.
Crude oil, natural rubber
Crude oil could also be cool as inventories are expected to rise. Brent crude oil for April futures was up at $110.21 a barrel, while NYMEX crude futures were quoted at $92.20 a barrel.
Natural rubber is seen ruling weak on fears that demand may lower besides the drop in crude oil from its alternative synthetic rubber is derived.
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