GEPL Capital`s view on bullions, base-metals, energy
GEPL Capital has come out with its report on bullions, base-metals and energy updates.
August 01, 2012 / 14:10 IST
GEPL Capital has come out with its report on bullions, base-metals and energy updates.
BullionsGold declined, ending a four-session rally, as consumer confidence rose for the first time in five months, easing pressure on the Federal Reserve to announce measures to boost growth. The Conference Board’s index of consumer confidence increased to 65.9 this month from 62.7 in June. Economists projected a reading of 61.5, according to the median estimate in a Bloomberg News survey. The Federal Reserve starts a two-day meeting today and European Central Bank policy makers convene on Aug. 2. ECB President Mario Draghi said last week policy makers will do whatever is needed to save the euro.Gold futures for December delivery fell 0.6% to settle at $1,614.60 an ounce at 1:47 p.m. on the Comex in New York. The decline was the first for a most-active contract since July 24, as prices advanced 0.6% in July amid expectations that central banks in Europe and the U.S. will take additional measures to spur growth, fueling inflation. The precious metal surged 70% from the end of December 2008 to June 2011 as the U.S. central bank kept borrowing costs at a record low and bought $2.3 trillion of debt in two rounds of so-called quantitative easing. Silver futures for September delivery slipped 0.4% to $27.914 an ounce on the Comex, after touching $28.335, the highest since July 5. Prices advanced 1.1% this month.Base-MetalsCopper rose to the highest in more than a week as plans in China to increase spending on railroads and other projects boosted the outlook for demand in the world’s largest consumer of the metal. China announced a jump in planned railway spending, and the State Council called for private investment in industries, including utilities, as Premier Wen Jiabao tries to reverse an economic slowdown. The country will spend 470 billion yuan ($74 billion) on railroads and bridges this year, a bond prospectus issued yesterday stated.Copper futures for September delivery climbed less than 0.1% to settle at $3.4175 a pound at 1:21 p.m. on the Comex in New York, after rising to $3.457, the highest for a most- active contract since July 20. Berry also cited speculation that central banks may announce new measures this week aimed at stoking growth. Federal Reserve policy makers begin a two-day meeting today, and European Central Bank officials will convene on Aug. 2. Copper stockpiles monitored by the London Metal Exchange, down 33% this year, slipped 0.1% to 248,825 metric tons, daily exchange figures showed. Prospects for copper supply to fall short of demand have helped to support prices. Output of the metal from mines slid 18% from a year earlier in the first half, Xstrata Plc, the world’s fourth-largest producer, said in a statement. On the LME, copper for delivery in three months advanced 0.2% to $7,560 a metric ton ($3.43 a pound). Nickel, aluminum, lead, zinc and tin fell in London.EnergyOil fell for a second day on speculation the Federal Reserve will be less likely to announce additional measures to stimulate the economy after U.S. consumer confidence and business activity unexpectedly grew. Prices dropped as much as 2.5% as a Bloomberg survey of economists showed the Fed will probably forgo a third round of large-scale asset purchases at a two-day meeting beginning today. Consumer confidence rose for the first time in five months in July and a barometer of business activity gained.Oil for September delivery fell $1.99, or 2.2%, to $87.79 a barrel at 1:18 p.m. on the New York Mercantile Exchange. Prices have climbed 3.3% this month and declined 11% this year. Earlier, futures touched $87.74. Brent crude for September settlement decreased $1.59, or 1.5%, to $104.61 a barrel on the London-based ICE Futures Europe exchange. The Confidence Board’s confidence index increased to 65.9 this month from 62.7 in June, figures from the New York-based private research group showed today.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.To read the full report click on the attachment 
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