Weak demand can continue to put pressure on Gold: Emkay

Emkay's report on precious metals and energy:

• US Comex gold futures for August delivery settled down USD 18.2 at USD 1,211.6 an ounce. Trading volume was 270,000 lots, heavier than its 30-day average of 214,000.
• Bullion prices continued to slide further on sell off by institutional investors and sent prices below USD 1,200 per ounce for the first time in nearly three years.
• Quarter end selling by funds for squaring positions added to further losses in gold prices.
• The Indian central bank squeezed gold buyers further on Thursday, ruling out any credit transactions for imports unless they were intended to make jewelry for export, as it looks to rein in a record current account deficit.
• Gold prices are expected to go down today as weak investment demand can continue to put pressure on prices.
• Gold in India is expected to go down and a stronger rupee can push prices further down.
• Gold for August delivery on the Multi Commodity Exchange (MCX) was down by 2.91 percent at INR 25,375/10gms and silver was down by 1.95 percent closing at INR 38,796/kg.

• US crude oil futures settled up USD 1.55 or 1.62 percent at USD 97.05 per barrel, from the previous close of USD 95.50.
• Front-month Brent was up USD 1.16 at USD 102.82 a barrel. Output at Britain's Buzzard oilfield in the North Sea is expected to stay at reduced levels of around 170,000 barrels per day (bpd) for around five days which supported prices.
• Also, lower US unemployment claims helped support oil prices. We expect Crude oil prices to go up as positive US data for consumer sentiment and escalating tensions in Libya can support prices.
• US natural gas futures ended higher on Thursday as inventories rose last week by 95 billion cubic feet to 2.533 trillion cubic feet.
• Natural Gas is expected to move down today as high inventories and subdued demand on milder weather forecasts can continue to put pressure on prices.
• Front-month gas futures on the New York Mercantile Exchange ended down 15.5 cents, or 4.1 percent, at USD 3.582 per million British thermal units after sinking to USD 3.556 after the EIA report.

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