GEPL Capital`s view on bullions, base-metals, energy
GEPL Capital has come out with its report on bullions, base-metals and energy updates.
June 21, 2012 / 14:02 IST
GEPL Capital has come out with its report on bullions, base-metals and energy updates.
BullionsGold declined for a third day in the longest losing run in a month after the Federal Reserve extended its Operation Twist program while refraining from additional debt purchases. Silver, platinum and palladium retreated. Spot gold fell as much as 0.6 percent to $1,597.50 an ounce, and was at $1,600.63 at 10:37 a.m. in Singapore. Bullion dropped to a one-week low yesterday after the Fed extended its program of replacing short-term bonds with longer-term debt by $267 billion through the end of 2012. The central bank bought $2.3 trillion of debt in two rounds of quantitative easing, or QE, from December 2008 to June 2011.Gold prices, up for a 12th year as investors sought protection from weakening currencies and financial turmoil, almost doubled in that time. Fed officials reduced their estimate for growth in 2012 to between 1.9 percent and 2.4 percent from 2.4 percent to 2.9 percent projected in April. The jobless rate will end the year at 8 percent to 8.2 percent. August-delivery bullion fell for a fourth day on the Comex in New York, losing as much as 1.1 percent to $1,598.10 an ounce before trading at $1,601.30. Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by bullion, were at a one-month high of 1,281.62 metric tons yesterday, unchanged since June 18, the company’s website showed.Base-MetalsCopper fell for a second day after the U.S. Federal Reserve cut growth forecasts and an expansion in stimulus program failed to meet some investor expectations. Three-month copper fell as much as 1.3 percent to $7,446.50 a metric ton on the London Metal Exchange and last traded at $7,462.75 at 10:57 a.m. Shanghai time. The contract slid by the most in almost two weeks yesterday. Copper for September delivery on the Comex dropped 0.7 percent to $3.3720 a pound. Fed officials cut their forecast for gross domestic product growth in 2012 to between 1.9 percent and 2.4 percent from 2.4 percent to 2.9 percent, and extended the program of replacing short-term bonds with longer-term debt by $267 billion through the end of 2012China’s manufacturing in June may shrink for an eighth month, as a preliminary reading of purchasing manager index stood at 48.1. This compares with a final reading of 48.4 in May. On the LME zinc fell 0.4 percent to $1,859 a ton, extending a 1.7 percent slump yesterday, and nickel retreated 1.7 percent to $16,900 a ton. Aluminum was little changed at $1,907 a ton while lead fell 0.2 percent to $1,879 a ton. Tin was unchanged at $19,200 a ton.EnergyThe price of oil dropped almost 3 percent Wednesday as the sluggishness of the economy was underscored by more pessimism from the Federal Reserve and a surprising jump in U.S. oil supplies. Benchmark U.S. Crude fell by $2.47 to $81.56 per barrel in New York. Brent crude, which is used to price much of the oil imported into the U.S., lost $1.83 to $93.93 per barrel in London. Oil has been sliding for several weeks as the global economy appeared to slow down. The Energy Information Administration said oil and gasoline demand dropped last week in the U.S. Supplies also grew by 2.9
million barrels, a surprise for analysts who had predicted that supplies would fall by 600,000 barrels. Oil supplies have risen this year to the highest level since 1990.Oil prices fell further in the afternoon when the Federal Reserve said it was concerned about a weak jobs market in the U.S. The Fed, which concluded a two-day meeting on Wednesday, said it would try to spark more consumers spending and borrowing by keeping long-term interest rates low. Gasoline prices have tumbled by nearly 45 cents per gallon, on average, since the first week of April. The national average fell by a penny to $3.487 per gallon on Wednesday, according to auto club AAA, Wright Express and Oil Price Information Service. In other futures trading, heating oil lost 2.48 cents to 2.6103 per gallon while wholesale gasoline lost 3.12 cents to $2.6103 per gallon. Natural gas lost a penny to $2.535 per 1,000 cubic feet.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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