Gold will likely head south in the domestic market on Monday as economic recovery in the US makes the yellow metal lose its status as an investment safe tool. An economic recovery encourages investors to bet on riskier assets such as equities.
But a rising dollar, which gained against a basket of currencies, could cap sharp fall in the precious metal. This is because any rise in the dollar against the Indian rupee makes import of commodities such as gold, edible oils and vegetable oils costlier.
In early trade at Singapore, spot gold was quoted lower at $1,576.86 an ounce. Gold for April contract at the futures exchange was quoted at $1,575.60. In the domestic market on Saturday, gold for jewellery (99.5 per cent purity) closed higher at Rs 29,440 for 10 gm.
Soyabean, crude palm oil
An estimate by the US Department of Agriculture that global soyabean production could be lower than initially expected could help the oils and oilseeds complex rise. The USDA projections have pegged the Argentine crop lower that what was estimated earlier.
In early trade in Asia, soyabean for May delivery trade on the Chicago Board of Trade was up at $14.79. On Bursa Malaysia Derivatives Exchange during the week-end, crude palm oil for May contract rose to 2,448 ringgit ($788) a tonne.
However, rabi arrivals could cap major gains in the complex.
Corn, Brent crude
The grains complex could also rise in view of the bullishness in the oilseeds complex. Corn futures retained the $7 a bushel with May contract quoting at $7.07. Wheat for May contract increased to $6.9975 a bushel.
Brent crude is seen slipping as Saudi Arabia was reported to have increased its production. In early Asian trade, Brent for April delivery was down at $110.46 a barrel and NYMEX crude at $91.60.