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 14, 2012 / 13:03 IST
GEPL Capital has come out with its report on bullions, base-metals and energy updates.
BullionsGold is set to advance for a fifth day in the longest winning streak since April on speculation that the U.S. Federal Reserve will take additional steps to buoy the economy, potentially weakening the dollar. Immediate-delivery gold was little changed at $1,617.57 an ounce at 10:43 a.m. in Singapore after gaining 1.7 percent in the preceding four days. August-delivery bullion was also little changed at $1,618.70 an ounce on the Comex in New York. Data for release today may show U.S. consumer prices fell 0.2 percent in May from a month earlier, the most since December 2008, according to the median estimate in a Bloomberg survey. Fed policy makers start a two-day meeting on June 19 to review monetary policy, convening after weekend elections in Greece that may determine whether the nation remains in the euro zone.The Fed bought $2.3 trillion of bonds in two rounds of quantitative easing from 2008 through 2011 to stimulate the economy. The situation in Europe poses “significant risks” to the U.S. financial system and economy, Fed Chairman Ben S. Bernanke told lawmakers on June 7. U.S. unemployment in May rose to 8.2 percent from 8.1 percent the prior month, and job growth slowed to 69,000, compared with 275,000 in January. Alexis Tsipras, whose Syriza party in Greece is vying for first place in pre-election polls. The euro traded little changed versus the dollar at $1.2560, after two days of gains. The currency has lost 3.1 percent this year as the debt crisis worsened. Moody’s Investors Service yesterday cut the credit ratings of Spain and Cyprus. Spot silver rose as much as 0.3 percent to $28.92 an ounce and traded at $28.8825.Base - MetalsCopper may drop for a third day as Spain’s credit rating was cut by Moody’s and economic reports in the U.S and Europe added to investor concern that slowing global growth will cut demand for commodities. Three-month delivery was little changed at $7,392 a metric ton on the London Metal Exchange at 12 p.m. Tokyo time. The metal touched $7,233.25 on June 8, the lowest level since Dec.19. Metal for July delivery was little changed at $3.337 a pound on the Comex in New York. Spain’s credit rating was cut three steps by Moody’s Investors Service yesterday on a weakening economy and increased debt burden. U.S. retail sales dropped in May for a second month, and Euro-area industrial production declined for a second month in April.The euro held gains against the dollar on speculation Greece will stay in the currency bloc. The longer-term outlook still remains strong, with Chinese buyers likely to take advantage of current price levels to boost purchases over the coming months, he said. Greek politician Alexis Tsipras said he expects the European Union will do all it can to keep the nation in the euro even if he wins June 17 elections and carries out his promise to repeal austerity measures. The September-delivery contract on the Shanghai Futures Exchange was little changed at 54,030 yuan ($8,485) a ton. On the LME, aluminum rose 0.2 percent to $1,968 a ton and zinc was little changed at $1,884 a ton. Lead was unchanged at $1,900 a ton. Nickel climbed 0.7 percent to $17,090 a ton, gaining for the first time in three days. Tin hadn’t traded.EnergyOil fluctuated after an Energy Department report showed that U.S. fuel inventories unexpectedly fell and as OPEC ministers gather to discuss the group’s production ceiling at a meeting tomorrow. Futures rose as much as 0.8 percent earlier after the Energy Department said gasoline supplies fell 1.72 million barrels to 201.8 million last week. Stockpiles were forecast to gain 1.4 million barrels in a Bloomberg survey. OPEC will probably leave its output target unchanged tomorrow.Crude oil for July delivery slipped 3 cents to $83.29 a barrel at 1:24 p.m. on the New York Mercantile Exchange. Prices are down 16 percent this year. Brent oil for July settlement increased 62 cents, or 0.6 percent, to $97.76 a barrel on the London-based ICE Futures Europe exchange. July futures expire tomorrow. The more actively traded August contract was up 37 cents, or 0.4 percent, at $97.34. Gasoline output surged 5.5 percent to 9.55 million barrels a day, the highest level since August. It was the biggest one- week gain since December 2010. U.S. exports of the motor fuel, which climbed 62 percent to a record 479,000 barrels a day last year, averaged 403,000 barrels over the four weeks ended June 8, according to the department.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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