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 04, 2012 / 11:33 IST
GEPL Capital has come out with its report on bullions, base-metals and energy updates.
BullionsGold jumped the most since August as signs of weakening job growth in the U.S. fueled expectations that the Federal Reserve will take further steps to spur growth, boosting the appeal of the metal as an inflation hedge. Payrolls climbed by 69,000 last month, less than the most- pessimistic forecast after a revised 77,000 gain in April that was smaller than initially estimated. To rekindle the economy, the Fed purchased $2.3 trillion of debt in two rounds of so-called quantitative easing from December 2008 to June 2011, helping to send gold to a record $1.923.70 an ounce in New York in September. The metal, which climbed for 11 consecutive years, erased its gains last month as the deepening crisis in Europe prompted investors to buy the dollar as a haven rather than gold. Earlier this year, bullion slipped into a bear market by dropping as much as 21 percent from its peak last year as government reports signaled an improving U.S. economy and reduced the chances of further stimulus from the Fed.Gold futures for August delivery jumped 3.7 percent to settle at $1,622.10 an ounce at 1:54 p.m. on the Comex in New York, the biggest advance for a most-active contract since Aug. 8. Before the Labor Department report, prices slumped as much as 1.2 percent. The metal dropped 6 percent in May, the fourth straight decline and the longest losing run since 2000 as the dollar climbed 5.4 percent against a basket of six currencies last month. Today’s rally helped gold erase losses for the year and rise 3.5 percent.Base – MetalsCopper futures fell for the fifth straight week, the longest slump in two years, as U.S. job growth stalled and rising unemployment in Europe added to signs that metal demand may dwindle. U.S. payrolls climbed by 69,000 in May, less than the most- pessimistic forecast in a Bloomberg News survey and the smallest gain in a year, government figures showed. Unemployment in the 17 nations that use the euro rose to a record 11 percent, the European Union said. The cost of insuring against a default on Spanish government bonds rose to an all-time high as the region’s debt crisis deepened.Copper futures for July delivery fell 1.5 percent to settle at $3.3135 a pound at 1:22 p.m. on the Comex in New York. Earlier, the price touched $3.30, the lowest for a most-active contract since Dec. 20. The metal, down 3.9 percent this week, has slumped 19 percent in the past 12 months. A gauge of manufacturing in the euro area in May showed contraction for the 10th straight month. Copper also slid as factory output in China, the biggest global consumer of industrial metals, expanded at the weakest pace since December. On the London Metal Exchange, copper for delivery in three months dropped 0.9 percent to $7,361 a metric ton ($3.34 a pound). Aluminum, tin, lead and nickel also fell in London. Zinc rose.EnergyCrude fell to the lowest level in almost eight months as worsening employment rates in the U.S. and the euro area signaled fuel demand may tumble. Oil dropped as much as 4.9 percent after the Labor Department said American employers added the fewest workers in a year in May. The euro region’s jobless rate reached a record high, the European Union’s statistics office in Luxembourg said. Brent dropped below $100 for the first time since October.Crude futures for July delivery declined $3.70, or 4.3 percent, to $82.83 a barrel at 2:20 p.m. on the New York Mercantile Exchange after falling to $82.29, the lowest intraday level since Oct. 7. Prices are down 25 percent from this year’s settlement high of $109.77 on Feb. 24. Futures have fallen 8.8 percent this week. Brent for July settlement tumbled $3.89, or 3.8 percent, to $97.98 a barrel on the ICE Futures Europe exchange in London. The European benchmark has fallen 9.1 percent this year. U.S. payrolls climbed by 69,000, less than the most- pessimistic estimate in a Bloomberg survey in which responses ranged from 75,000 to 195,000. The jobless rate unexpectedly rose to 8.2 percent. It was forecast to hold at 8.1 percent.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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