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 18, 2012 / 13:58 IST
GEPL Capital has come out with its report on bullions, base-metals and energy updates.
BullionsGold futures rose, capping the longest rally in almost 10 months, on speculation that central banks will take steps to buoy economies. The Bank of England yesterday unveiled measures to stem the escalation of Europe’s debt crisis as global policy makers prepare for the impact of Greek elections.
U.S. Federal Reserve officials may discuss stimulus efforts at a meeting on June 19 after jobless claims unexpectedly rose. The dollar fell against a basket of currencies for the fourth straight day, the longest slump since AprilGold futures for August delivery rose 0.5 percent to settle at $1,628.10 an ounce at 1:40 p.m. on the Comex in New York. The price climbed for the sixth straight session, the longest rally since late August. Central bankers from the U.K. to Japan and Canada stepped up warnings on the threat to world financial markets should Europe fail to contain its debt crisis. Greeks vote on June 17 in an election that may determine the fate of the euro. The Syriza party has promised to renege on bailout terms proposed by the European Commission, European Central Bank and International Monetary Fund. Silver futures for July delivery rose 1.2 percent to $28.74 an ounce. The metal climbed 0.9 percent this week.Base-MetalsCopper advanced, capping the first weekly gain since April, on speculation that demand will climb as central banks take steps to revive economic growth. The case for more stimuli in the U.K. “is growing,” Bank of England Governor Mervyn King said yesterday. Federal Reserve officials will start a two-day meeting June 19 and some have said there’s scope for further easing.Copper futures for July delivery climbed 0.9 percent to settle at $3.3835 a pound at 1:21 p.m. on the Comex in New York. The gain was the third straight, the longest rally since May 29. Prices rose 3 percent this week, the first such gain since the five days ended April 27. Industrial production in the U.S. unexpectedly fell in May for the second time in three months as factories turned out fewer vehicles and consumer goods. Retail sales slid for a second month in May, a report showed June 13. Orders to remove copper from warehouses monitored by the London Metal Exchange climbed 4.1 percent to 28,900 metric tons. Canceled warrants, as the orders are known, almost doubled this week. Hong Kong Exchanges & Clearing Ltd. agreed today to buy the LME for 1.39 billion pounds ($22 billion). On the LME, copper for delivery in three months increased 1.2 percent to $7,510.50 a ton ($3.41 a pound). Zinc, tin, nickel and lead also gained in London, while aluminum fell.EnergyOil rose to the highest in a week as gains by pro-bailout parties in Greek elections eased speculation that Europe’s debt crisis will escalate and threaten global economic growth. Futures climbed as much as 1.9 percent in New York. The New Democracy and Pasok parties won enough seats to form a majority in the 300-member parliament, according to an official projection, easing concern that Greece would reject austerity measures needed to qualify for international aid. The death of Crown Prince Nayef bin Abdulaziz Al Saud in Saudi Arabia, the world’s largest oil exporter, raised the issue of succession for the second time in less than a year.Oil for July delivery advanced as much as $1.57 to $85.60 a barrel in electronic trading on the New York Mercantile Exchange, the highest intra-day price since June 11. It was at $84.82 at 2:34 p.m. Sydney time. The contract increased 12 cents to $84.03 on June 15, the highest close since June 8. Prices are down 14 percent this year. Brent oil for August settlement rose 91 cents, or 0.9 percent, to $98.52 a barrel 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 $13.40, up from $13.28 on June 15.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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