Weaker rupee can limit downside in gold prices: Emkay
Emkay Commodity Research has come out with its report on precious and base metals. According to the research firm, Gold in India is also likely to move down but a weaker rupee can limit the downside in prices.
Emkay's research report on commodities
Precious Metals:US gold futures for June delivery fell 0.6 percent to USD 1,377.90 an ounce. Gold prices were down as a stronger dollar after positive consumer sentiment and the surge in US home prices fueled worries about the tenure of Fed’s bond buying program and hurt gold prices. However, physical demand for bullion on bargain hunting limited the downside in pricesSPDR Gold Trust, the world's largest gold-backed exchangetraded funds holdings fell 0.38 percent to 1012.25 tonnes on Tuesday from 1016.16 tonnes on Friday Gold prices are expected to remain in a range with a downward bias as stronger equity markets and outflows from gold funds can continue to keep prices in check.Gold in India is also likely to move down but a weaker rupee can limit the downside in prices. Gold for June delivery on the Multi Commodity Exchange
(MCX) was down by 0.13 percent at INR 26,411/10gms and silver was down by 0.80 percent closing at INR 43,262/kg.Base MetalsIn New York, COMEX copper for May delivery closed at USD 3.32 a tonne, up by USD 0.02, or 0.59 percent. Copper prices were up as US housing prices surged in March by the most in seven years, signaling a recover in housing sector and supported copper prices. A shortfall of scrap metal has crimped supply in China, pushing up local premiums and encouraging traders to import metal, which also pushed prices higher.Base Metals are expected to go up as Chinese copper demand is at its strongest in the second quarter, after the Lunar New Year break which is expected to continue for a while. Three month copper on the London Metal Exchange closed 0.32 percent higher at USD 7,322 a tonne, paring gains after touching a session peak of USD 7,379.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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