GEPL Capital`s view on bullions, base-metals, energy
GEPL Capital has come out with its report on bullions, base-metals and energy updates.
GEPL Capital has come out with its report on bullions, base-metals and energy updates.
BullionsGold futures rose the most in more than a week on demand for a haven amid signs that Europe’s debt crisis is deepening. The cost of insuring against default on Spanish sovereign bonds rose to a record as the nation struggles to rescue its ailing banks. The European Union said that Italy’s high government debt and sluggish economy make the country more vulnerable to the region’s financial crisis. Global equities tumbled, and the euro dropped against the dollar.Gold futures for August delivery rose 0.9 percent to settle at $1,565.70 an ounce at 1:44 p.m. on the Comex in New York, the biggest gain for a most-active contract since May 18. Silver futures for July delivery climbed 0.7 percent to $27.983 an ounce on the Comex, the third gain in four sessions.Base - MetalsCopper fell to the lowest this year in New York as a reduction of Spain’s credit rating fueled concern that Europe’s debt crisis will slow the global economy and reduce demand for raw materials. Spain’s sovereign rating was cut by Egan-Jones Ratings Co. yesterday amid a worsening economic outlook. Prices also slid after the official Xinhua News Agency said today that China, the world’s largest metals user, has no plans to introduce stimulus measures on the scale unleashed in 2008. Copper prices are headed for their biggest monthly decline since SeptemberCopper futures for July delivery declined 2.1 percent to settle at $3.39 a pound at 1:16 p.m. on the Comex in New York, after touching $3.3725, the lowest since Dec. 29. Prices have fallen 11 percent in May. The dollar rose to the highest in almost two years against the euro, paring demand for commodities as alternative assets. The cost of insuring against default on Spanish sovereign bonds rose to a record amid concern over bank bailouts.Copper stockpiles in London Metal Exchange warehouses rose 0.6 percent to 227,100 metric tons, a second straight increase. On the LME, copper or delivery in three months fell 2.5 percent to $7,477.50 a ton ($3.39 a pound). Nickel on the LME declined as much as 2.3 percent to $16,170 a ton, the lowest since December 2009. Prices are down 13 percent this year, the most among the exchange’s six main metals. Stockpiles are at the highest since July 1.Zinc, lead, tin and aluminum also fell in London.EnergyOil tumbled to a seven-month low on speculation that U.S. crude stockpiles climbed to the highest level since 1990 and as the euro weakened on concern that the debt crisis will overwhelm Spain. New York futures fell as much as 3.6 percent and Brent oil traded in London dropped below $103 a barrel for the first time this year. An Energy Department report tomorrow is projected to show that U.S. supplies rose 1 million barrels to 383.5 million last week. The euro fell versus the dollar as Spain’s default risk increased.Oil for July delivery fell $2.88, or 3.2 percent, to $87.88 a barrel at 1:45 p.m. on the New York Mercantile Exchange. Futures reached $87.49, the lowest intraday level since Oct. 24. Prices are down 16 percent this month, the biggest drop since December 2008. Brent oil for July settlement declined $3.19, or 3 percent, to $103.49 a barrel on the London-based ICE Futures Europe exchange. The contract touched $102.97, the lowest level since Dec. 19. Saudi Arabian Oil Minister Ali al-Naimi said on May 13 in Adelaide, Australia, that he wanted to see the Brent crude contract drop to $100 a barrel.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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