GEPL Capital`s view on bullions, base-metals, energy

GEPL Capital has come out with its report on bullions, base-metals and energy updates.

Bullions

Gold was set for its worst weekly loss this year after the U.S. Federal Reserve didn’t resume a debt purchase program even as the economy showed signs of slowing. Silver was poised for its worst week since December. Spot gold fell as much as 0.3 percent to $1,561.75 an ounce before trading at $1,562.75 by 10:24 a.m. in Singapore, down 4 percent this week, the most since the five days to Dec. 16. Bullion dropped 2.6 percent yesterday, the most since Feb. 29. Manufacturing in the Philadelphia region shrank in June at the fastest pace in almost a year and sales of existing homes in the U.S. fell in May, separate reports showed yesterday.

The Fed on June 20 extended its program of replacing short-term bonds with longer-term debt by $267 billion through the end of 2012, without announcing further debt purchases. August-delivery bullion was little changed at $1,564.90 an ounce on the Comex in New York. Futures declined yesterday as the slump in equities and commodities drove the dollar up by the most since March against a six-currency basket.

Base-Metals

Copper is set for seventh weekly loss in eight amid speculation demand will weaken as the latest manufacturing gauges for China, the world’s biggest user, and the U.S. added to signs that economic growth is slowing. Copper fell as much as 0.4 percent to $7,314 a metric ton, the lowest level since June 8, and traded $7,323.50 at 11:02 a.m. in Seoul on the London Metal Exchange. The price is down 2.5 percent this week and 13 percent this quarter. September- delivery metal rose 0.2 percent to $3.312 a pound on the Comex. The Federal Reserve Bank of Philadelphia’s factory index dropped to minus 16.6 in June, the lowest level since August.

The Fed earlier this week reduced its 2012 forecast for economic growth and policy makers decided against a third round of debt purchases. Existing U.S. home sales fell more than forecast by analysts, and jobless claims topped estimates. Copper inventories tracked by the LME rose 0.7 percent to 252,150 tons as of yesterday, on track to expand for a fourth week in five, daily exchange figures showed. Stockpiles monitored by the Shanghai Futures Exchange advanced for the first time in 11 weeks to 137,084 tons, according to a bourse statement yesterday. Markets in China are closed for a holiday. On the LME, aluminum dropped 0.3 percent to $1,865 a ton and lead lost 0.2 percent to $1,825 a ton, while nickel was unchanged at $16,450 a ton. Tin and zinc were little changed at $18,777 per ton and at $1,825 a ton.

Energy

Oil may decline next week on signals that global economic growth is slowing as U.S. inventories increase. Futures tumbled yesterday as reports on U.S. manufacturing, jobless claims and home sales pointed to a slowdown, and euro- area manufacturing output shrank at the fastest pace in three years. Crude supplies rose 2.86 million barrels to 387.3 million last week, the highest level since July 1990, an Energy Department report on June 20 showed.

The Federal Reserve Bank of Philadelphia’s economic index yesterday showed the worst contraction in manufacturing in almost a year. The National Association of Realtors said purchases of existing U.S. properties dropped in May. U.S. jobless claims decreased by 2,000 to 387,000 last week, the Labor Department said. The median forecast of economists surveyed by Bloomberg called for 383,000.

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