Stronger Rupee can put pressure on Gold prices: Emkay

Emkay Commodity Research has come out with its report on precious metals, base metals and energy. According to the research firm, Gold is expected to go down as uncertainty over the fiscal cliff continues to put pressure on gold prices and in India it is expected to follow international prices and stronger rupee can further put pressure on prices.

• U.S. Comex gold futures for February delivery settled at $1,697, versus the previous session's close of $1,696.80.
• Gold was down as lack of progress over the budget talks in the US decreased gold’s inflation hedge appeal.
• Also negative data for US core CPI which came at 0.1 put pressure on gold prices.
• Republican Boehner offered to raise taxes for the wealthy; However, Obama is not ready to accept the new offer in exchange for major spending cuts.
• Gold is expected to go down as uncertainty over the fiscal cliff continues to put pressure on gold prices.
• Gold in India is expected to follow international prices and stronger rupee can further put pressure on prices.
• Gold for February delivery on the Multi Commodity Exchange (MCX) was 0.12 percent down at INR 31188/10gms.

• In New York, COMEX copper for December delivery closed at 366.50, down by $2.05, or 0.56%
• Copper prices showed some support on Friday as positive Manufacturing PMI numbers boosted some demand and increased the sentiment for economic improvement in China.
• Weaker dollar also supported the prices to move ahead, US manufacturing PMI which came positive also supported the base metal prices
• Base metals look positive for the day as positive Chinese Manufacturing numbers and weaker dollar can push the prices.
• Three-month copper on the London Metal Exchange, was up $28.50 or 0.35% and closed at 8073.50 from the previous close of 8044.50

• U.S. January crude closed up 84 cents at $86.73 a barrel, having traded from $86.05 to $86.92.
• Crude oil prices were up as positive data for Chinese PMI which came at 50.9 increased the demand potential from China.
• A weaker dollar internationally and continued tensions in the Middle East also supported crude prices.
• We expected Crude oil prices to be range bound today as uncertainty over the fiscal cliff still continues to put pressure on commodity prices.
• U.S. natural gas futures ended lower on Friday due to record high supplies and moderate Northeast and Midwest weather forecasts.
• We expect Natural Gas prices to go down further as milder weather has cooled down the heating demand thus putting pressure on prices.
• Front-month gas futures on the New York Mercantile Exchange ended down 3.3 cents, or 1 percent, at $3.314 per million British thermal units, after sinking earlier to $3.261.

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