GEPL Capital`s view on bullions, base-metals, energy

GEPL Capital has come out with its report on bullions, base-metals and energy updates.

Bullions

Gold futures rose for the second straight session on renewed concern that the European debt crisis will spur demand for the metal as a haven. Spain requested as much as 100 billion Euros ($125 billion) in emergency loans to shore up its banking system. Greece is scheduled to hold elections on June 17 after a vote last month failed to produce a governing majority.

Gold futures for August delivery gained 0.3 percent to settle at $1,596.80 an ounce at 1:51 p.m. on the Comex in New York. Earlier, the metal fell as much as 0.5 percent. The price gained 0.2 percent on June 8. Silver futures for July delivery advanced 0.5 percent to $28.616 an ounce.

Base - Metals

Copper futures rose for the first time in three sessions as imports increased in China, the world’s biggest consumer of industrial metals. Shipments jumped 12 percent in May from April, the first increase in three months, Chinese government data showed yesterday. Spain sought as much as 100 billion Euros ($125 billion) following weeks of escalating concern that bad loans at the country’s banks might overwhelm public finances.

Copper futures for July delivery advanced 1.8 percent to settle at $3.343 a pound at 1:13 p.m. on the Comex in New York. The metal has fallen 13 percent this quarter on concern that easing growth in China and faltering economies in Europe will pinch demand. Concern that a Greek exit from the euro will roil financial markets may limit price gains. On the London Metal Exchange, copper for delivery in three months increased 1.7 percent to $7,420 a metric ton ($3.37 a pound) Zinc, nickel and lead advanced in London. Aluminum and tin fell.

Energy

Oil fell on skepticism that Spain’s bailout plan will succeed in easing the euro region’s debt crisis, which is slowing economic growth and curbing fuel use. Futures dropped as much as 1.7 percent as equities and the euro declined in the first trading day after the bailout. Spain asked euro-region governments over the weekend for as much as 100 billion euros ($126 billion) to help shore up its banking system. Saudi Arabian Oil Minister Ali al-Naimi said OPEC needs a higher output target in an interview with the Gulf Oil Review.

Crude oil for July delivery declined $1.22, or 1.5 percent, to $82.88 a barrel at 2:18 p.m. on the New York Mercantile Exchange. The contract increased as much as $2.54, or 3 percent, earlier. Prices have fallen 16 percent this year. Brent oil for July settlement dropped $1.37, or 1.4 percent, to $98.10 a barrel on the London-based ICE Futures Europe exchange. Spain’s rescue request followed weeks of concern that bad loans at its banks might overwhelm public finances. Brent oil, a benchmark for more than half the world’s crude, has fallen 22 percent since its highest close this year on March 13, amid speculation Europe’s debt crisis will derail the economic recovery and curb fuel demand.

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