Bullions, Base-Metals and Energy updates: GEPL Capital

Bullions:
Gold futures gained the most in three weeks as European debt concerns mounted, spurring demand for the metal as a hedge. Failure by leaders at this week’s summit to come up with measures to shore up the weakest countries’ finances may be “fatal” for the euro. Gold futures for August delivery advanced 1.4 percent to settle at $1,588.40 an ounce at 1:39 p.m. on the Comex in New York, the biggest gain for a most-active contract since June 1.

Gold headed for the biggest quarterly decline in almost four years, partly because the Fed decided against a third round of debt purchases. The metal surged 70 percent from the end of December 2008 to June 2011 as the Fed kept borrowing costs at a record low and bought $2.3 trillion of debt in two rounds of so- called quantitative easing. Silver futures for September delivery climbed 3.2 percent to $27.587 an ounce, the biggest gain since June 6. On the New York Mercantile Exchange, platinum futures for October delivery rose 0.5 percent to $1,442.70 an ounce, ending a sixsession slide. Palladium futures for September delivery gained 5 cents to $607.25 an ounce.

Base-Metals:
Copper climbed for a second day, paring a quarterly drop, after data showed that demand for new U.S. homes rose by more than forecast last month. Three-month copper rose as much as 0.9 percent to $7,402 a metric ton on the London Metal Exchange, before trading at $7,365.25 at 1:14 p.m. in Shanghai. The metal, set for the first quarterly fall in three, has lost 3.1 percent this year. Comex September-futures were little changed at $3.3275 per pound. New-home purchases increased to a 369,000 annual rate, the most since April 2010 and up 7.6 percent from the prior month, the Commerce Department reported yesterday. The number of houses on the market held near a record low.

European Union leaders will hold a two-day summit in Belgium from June 28 to address the debt crisis. Moody’s Investors Service yesterday downgraded 28 Spanish banks because of the country’s sovereign debt and souring real-estate loans. October-delivery copper on the Shanghai Futures Exchange gained 0.4 percent to 54,270 yuan ($8,525) a ton. The metal for immediate delivery on Shanghai’s Changjiang Nonferrous Metals Market was traded at a premium of about 300 yuan today over the SHFE’s so-called front-month contract. On the LME, aluminum rose 0.2 percent to $1,868 a ton, zinc climbed 0.3 percent to $1,809.75 a ton, and lead gained 0.8 percent to $1,802 a ton. Nickel and tin were little changed at $16,438 and $18,520 per ton, respectively.

Energy:
Oil fell for a second day in New York amid speculation a meeting of European leaders this week will fail to halt a debt crisis that threatens to slow the economy and curb fuel demand. Futures slid as much as 0.5 percent to trade below $80 a barrel for a fourth day. Germany’s Chancellor Angela Merkel hardened her resistance to sharing euro-area debt to resolve the region’s financial crisis, while Moody’s Investors Service cut the ratings of 28 Spanish banks. HSBC Holdings Plc reduced its economic growth forecast for China, the world’s second-biggest crude user. A government report tomorrow may show U.S. gasoline stockpiles increased for the third time in four weeks.

Oil for August delivery fell as much as 36 cents to $78.85 a barrel in electronic trading on the New York Mercantile Exchange and was at $78.96 at 1:59 p.m. Singapore time. The contract yesterday slipped 55 cents to $79.21, the lowest close since June 21. Prices have fallen 23 percent this quarter, the biggest drop since the final three months of 2008. Brent oil for August settlement slid 19 cents to $90.82 a barrel on the London-based ICE Futures Europe exchange. The European benchmark’s premium to West Texas Intermediate was at $11.86, compared with $11.80 yesterday.

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