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 20, 2012 / 12:43 IST
GEPL Capital has come out with its report on bullions, base-metals and energy updates.
BullionsGold may rebound, after dropping for the first time in eight sessions, on speculation that the U.S. Federal Reserve may take steps to boost the economy amid signs of faltering growth, increasing demand for a haven. Spot gold was little changed at $1,620.55 an ounce at 12:24 p.m. in Singapore. Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by bullion, were unchanged at a one-month high of 1,281.62 metric tons yesterday, the company’s website showed.Gold prices almost doubled after the Fed bought $2.3 trillion of debt in two rounds of quantitative easing from December 2008 to June 2011. The central bank will review new economic forecasts as it concludes a two-day meeting today, and may announce further measures to spur growth after
recent data in the housing and labor markets missed projections. Augustdelivery bullion was little changed at $1,621.20 an ounce after falling as much as 0.3 percent on the Comex in New York. Futures fell for a second day yesterday as a drop in Spanish bond yields eased concern that Europe’s debt crisis is worsening, offsetting a report that showed builders in the U.S. broke ground on fewer homes in May than forecast.Base-MetalsCopper futures rose, extending the longest rally in seven weeks, on signs of recovery in the U.S. housing market and prospects for higher demand in
China, the world’s largest consumer of industrial metals. Building permits, a proxy for future construction, were the highest in May since September 2008, and construction of single- family houses gained, U.S. data showed today. China’s economy may be improving in June on measures to support growth. The dollar fell the most in seven months against a basket of currencies, boosting the appeal of commodities as alternative assets.Copper futures for September delivery rose 1.1 percent to settle at $3.441 a pound at 1:23 p.m. on the Comex in New York. The price climbed for fifth straight session, the longest rally since May 1.Construction generates more than 40 percent of U.S. demand for copper, used in pipes and wiring, according to the Copper Development Association. Confidence among U.S. homebuilders climbed in June to a five-year high, based on the National Association of Home Builders/Wells Fargo index released yesterday. The Federal Reserve’s Open Market Committee, which sets the course of central bank policy, begins a two-day meeting today to decide whether more monetary stimulus is needed to boost growth. On the London Metal Exchange, copper for delivery in three months rose 1.3 percent to $7,609 a metric ton ($3.45 a pound).Nickel, zinc, tin and lead also gained on the
LME, while aluminum dropped.EnergyOil traded near the highest close in two days as rising imports by Japan and speculation the Federal Reserve will add stimulus to the U.S. economy countered concern that Europe’s debt crisis will derail the global recovery. Futures were little changed in New York after falling as much as 0.3 percent. Japan’s crude imports gained 7.1 percent in May from a year ago, according to data from the finance ministry. The Fed concludes a two-day meeting in Washington today, while Spain holds a bond auction tomorrow. Oil slid earlier after an industry report showed U.S. crude stockpiles dropped 550,000 barrels last week.Oil for July delivery, which expires today, slid 12 cents to $83.91 in electronic trading on the New York Mercantile Exchange at 1:37 p.m. Sydney time. It rose 0.9 percent yesterday to $84.03, the highest close since June 15. The more-actively traded August contract decreased 9 cents to $84.26. Front-month prices are down 15 percent this year. Brent oil for August settlement was at $95.75 a barrel, down 1 cent, on the London-based ICE Futures Europe exchange. The front-month price for the European benchmark contract was at a premium to West Texas Intermediate of $11.49, compared with $11.41 yesterday.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 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
