Gold likely to go down; weaker rupee may tap prices: Emkay
Emkay Commodity Research has come out with its report on precious metals and energy. According to the research firm, Gold in India is likely to go down but a weaker rupee on fears of downgrade by S&P could limit the downside in prices.
Emkay's research report on commodities
Precious Metals:US gold futures for June delivery settled down 1.6 percent or USD 22.2 at USD 1,364.70.Gold prices were down as US consumer sentiment reached a six year high, thus strengthening the dollar and also hitting gold’s safe haven appeal.Gold’s inflation hedge appeal was also hurt after Fed’s officials cited that the FED should end the stimulus program as the economy shows signs of improvement.SPDR Gold Trust, the world's largest gold-backed exchangetraded fund’s holdings fell 0.29 percent to 1038.41 tonnes on Friday from 1041.42 tonnes on Thursday.Gold prices internationally are likely to move down as a stronger dollar and fears of a slowdown in FED’s monetary stimulus is likely to put pressure on prices.Gold in India is likely to go down but a weaker rupee on fears of downgrade by S&P could limit the downside in prices.Gold for June delivery on the Multi Commodity Exchange (MCX) was down by 0.95 percent at INR 25,884/10gms and silver was down by 1.04 percent closing at INR 42,814/kg.Energy:US crude futures for July delivery settled up by USD 0.84 at USD 96.29 a barrel, up by 0.88 percent.Crude prices were supported over tensions in the Middle east over Syria’s civil war and Iran’s nuclear program which stoked supply concerns and supported prices.Better than expected US consumer sentiment which touched a six year high also improved the demand prospects for crude and pushed prices higher.We expect crude oil prices to go up as continued tensions between Syria and Israel and better demand outlook can continue to support prices.US natural gas futures ended up sharply on Friday due to technical buying and pushed prices higher.Natural gas is expected to move in a range as moderate weather forecasts are likely to keep prices in check.Front-month gas futures on the New York Mercantile Exchange ended up 12.3 cents at USD 4.055 per million British thermal units after trading between USD 3.915 and USD 4.096.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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