Expect gold to fall on import restrictions by RBI: Emkay
Emkay Commodity Research has come out with its report on precious metals and energy. According to the research firm, Gold in India is expected to move down on back of import restrictions by RBI and a stronger rupee would further push prices down.
June 05, 2013 / 20:05 IST
Emkay's research report on commodities
Precious Metals:U.S. Comex gold futures for August delivery settled down USD 14.70 at USD 1,397.20 an ounce, with trading volume about 50 percent below its 30-day average.Gold prices were down as the world's largest bullion consumer India further restricted imports of the precious metal to ease its surging CAD.A stronger dollar after positive US trade balance data also weighed on gold prices.Holdings in SPDR Gold Trust, the world's largest goldbacked exchange-traded fund, fell 0.27 percent to 1010.45 tonnes on Tuesday from 1013.15 tonnes on Monday.Gold prices internationally are expected to move down on caution ahead of the US payroll numbers and unemployment rate on Friday.Gold in India is expected to move down on back of import restrictions by RBI and a stronger rupee would further push prices down.Gold for August delivery on the Multi Commodity Exchange (MCX) was down by 0.91 percent at INR 27,092/10gms and silver was down by 1.47 percent closing at INR 43,763/kg.Energy:US crude futures settled down 14 cents or 0.15 percent to settle at USD 93.31 per barrel.Brent crude oil futures settled on Tuesday USD 1.18 higher at USD 103.24 a barrel.Brent crude was supported on news that South Korea would create new incentives for refiners to import crude that could bolster demand.Ongoing tensions in Syria after France said it had performed tests that proved President Bashar al-Assad's forces had used nerve gas in Syria's civil war also supported crude prices.However a stronger dollar on fears of slowdown in Fed’s bond buying program limited the upside in crude.We expect crude oil prices to go down as higher inventories expected today can push price down.US natural gas futures ended higher on Tuesday on support from a potential storm in the Gulf of Mexico and technical buying after last week's steep slide.Natural gas is expected to go down as above normal temperatures are likely to keep demand for gas subdued.Front-month July natural gas futures on the New York Mercantile Exchange ended up 0.7 cent at USD 3.998 per million British thermal units after trading between USD 3.965 and USD 4.033.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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