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May 13, 2013, 01.02 PM IST | Source: Moneycontrol.com

Expect Crude oil prices to go down: Emkay

Emkay Commodity Research has come out with its report on energy and precious metals. The research firm expects crude oil prices to go down as investors would remain cautious ahead of the manufacturing, GDP and retail sales data to gauge the health of global economy.

Emkay Commodity Research has come out with its report on energy and precious metals. The research firm expects crude oil prices to go down as investors would remain cautious ahead of the manufacturing, GDP and retail sales data to gauge the health of global economy.

Energy:

US crude futures for June delivery settled down by USD 0.35 at USD 96.04 a barrel, down by 0.36 percent.

A stronger dollar index due to improving labor market conditions in US hurt the demand for dollar denominated commodities and pushed prices down.

The U.S. economy is expected to grow at a slower pace in the second and third quarters of this year, according to the Philadelphia Federal Reserve's quarterly survey of forecasters, compared with their previous estimates, which can hurt the demand for crude and push prices down.

We expect crude oil prices to go down as investors would remain cautious ahead of the manufacturing, GDP and retail sales data to gauge the health of global economy.

US natural gas futures ended lower on Friday as higher inventories data and moderating weather forecasts hurt prices.

Prices are likely to go down further as moderating weather will reduce the heating demand for natural gas and hurt prices.

Front-month gas futures on the New York Mercantile Exchange ended down 7.3 cents, or 1.8 percent, at USD 3.91 per million British thermal units after trading between USD 3.907 and USD 4.010.

Precious Metals:

U.S. gold futures for June delivery settled down USD 32 at USD 1,436.60 an ounce, with trading volume around 10 percent above its 30-day average.

Gold prices were down as a stronger dollar against majority of currencies which put pressure on gold prices.

Strong recovery in US labor markets has stoked fears that Fed can gradually slowdown its bond buying program which hurt gold’s inflation hedge appeal and pushed prices further down.

SPDR Gold Trust, the world's largest gold-backed exchangetraded fund’s holdings fell 0.24 percent on Friday from Thursday.

Gold prices internationally are likely to move down as improving US economic outlook and outflows from exchange traded funds will continue to pressurize gold prices.

Gold in India is likely to go down but a weaker rupee and physical demand on the auspicious occasion of Akshay Tritiya can limit the downside.

Gold for June delivery on the Multi Commodity Exchange (MCX) was down by 1.19 percent at INR 26,843/10gms.

Also Read: Buy Crude oil at Rs 5250; target Rs 5400: Way2Wealth

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