Rupee movement may cap Gold prices in range: 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 move in a range as a range bound rupee movement can keep prices in check.

• U.S. gold futures for June delivery settled down USD 3.40 at USD 1,464.20 an ounce, with trading volume 25 percent below its 30-day average
• Gold prices were down as better than expected US non-farm payroll numbers and lower unemployment rate wiped out earlier gains in prices.
• Stronger equity markets also improved investors risk appetite and hurt gold’s safe haven appeal.
• SPDR Gold Trust, the world's largest gold-backed exchangetraded fund’s holdings fell 0.34 percent to 1065.61 tonnes on Friday from 1069.21 tonnes on Thursday.
• Gold prices internationally are likely to move in a range as strong equity markets and positive outlook for US economy can push down prices. London and Japanese markets remain closed today which can result in low volatility due to lesser volumes.
• Gold in India is likely to move in a range as a range bound rupee movement can keep prices in check.
• Gold for June delivery on the Multi Commodity Exchange (MCX) was down by 0.33 percent at INR 26,825/10gms.

• U.S. crude futures for June delivery settled up by USD 1.62 at USD 95.61 a barrel, up by 1.72 percent.
• Crude prices were supported as better than expected non-farm payroll numbers and lower unemployment rate which came at 7.5 percent improved the demand prospects for crude and supported prices.
• Israel carried out an air strike on Syrian military facility which has raised tensions in the Middle East region.
• We expect crude oil prices to go up as a weaker dollar internationally and geopolitical tensions are likely to further push prices higher.
• US natural gas futures ended higher on Friday on short covering ahead of the weekend.
• Natural gas prices are expected to move down as higher inventories and the receding winter season will continue to put pressure on prices.
• Front-month gas futures on the New York Mercantile Exchange ended up 1.6 cents at USD 4.041 per million British thermal units after sliding to a four-week low of USD 3.977.

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