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May 09, 2014, 01.55 PM IST | Source: Moneycontrol.com

Gold may trade rangebound to downward on poor demand: Emkay

Emkay Commodities has come out with its fundamental outlook on commodities. According to the research firm, Gold prices are expected to continue in rangebound to downward movement over poor demand from Asia and easing fear in Ukraine and Russia.

Emkay's fundamental outlook on commodities:

Precious Metals:

U.S. Comex gold futures for June delivery moved down by 0.09%. Gold for June delivery on the Multi Commodity Exchange (MCX) remained flat at Rs 28,523/10gms and silver moved down to Rs 41,587/kg

Gold prices remained flat in Indian as well as International market as poor demand from Asian economies and easing fear in Ukraine kept the prices in range. Pro-Moscow separatists in eastern Ukraine ignored a public call by Russian President Vladimir Putin to postpone a referendum on self-rule, declaring they would go ahead on Sunday with a vote that could lead to war. The decision, which contradicted the conciliatory tone set by Putin just a day earlier, caused consternation in the West, which fears the referendum will tear Ukraine apart. We expect Gold prices to continue in rangebound to downward movement over poor demand from Asia and easing fear in Ukraine and Russia.

We expect Gold prices to continue in rangebound to downward movement over poor demand from Asia and easing fear in Ukraine and Russia.

We expect Crude oil prices to remain down for the day over easing fear in Russia and higher gasoline inventories.

We expect Copper to remain down for the day over stronger dollar and worries over China. Nickel can be in range to higher for the day.

Energy:
Crude- U.S. crude oil futures settled down by 0.51% at $100.26 per barrel. Front-month Brent futures closed down at $108.04 a barrel moving down by 0.08%.

Crude Oil prices moved down nearly half a percent as easing fear in Ukraine and higher inventories pushed the prices further down. A Libyan government deal to reopen major oil ports controlled by rebels looks likely to unravel as the appointment of a new Islamist-backed prime minister fuels distrust that is eroding support for the accord. Japanese trading houses say they will push on with investments in North American shale oil and gas fields, despite write downs in the sector on low gas prices and reduced reserve estimates. We expect Crude oil prices to remain down for the day over easing fear in Russia and higher gasoline inventories.

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