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, set for a fourth monthly decline in the worst run since 1999, dropped for a second day as concern that the debt crisis in Europe was escalating strengthened the dollar as a haven. Spot gold lost as much as 0.6 percent to a one-week low of $1,545.88 an ounce, and was at $1,547.93 at 12:24 p.m. in Singapore. Bullion fell 1.6 percent yesterday, the most in three weeks, as the dollar rose to the highest level since September 2010 against a six-currency basket including the euro. The metal is 7 percent lower this month, the worst performance this year. Egan-Jones Ratings Co. cut its rating for Spain yesterday, a day after the country’s central bank said the economy will sink deeper into recession. Stocks, oil and copper fell today after China’s official Xinhua News Agency reported in an unattributed comment that the country has no plans to introduce stimulus on the scale seen during the financial crisis in 2008.August-delivery bullion was little changed at $1,549.10 an ounce on the Comex, reversing a 0.4 percent gain. Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, were unchanged for a third day at 1,270.26 metric tons yesterday, according to figures on the company’s website. Spot silver retreated for a third day, falling as much as 0.7 percent to $27.6575 an ounce, before trading at $27.7525. The metal is on course for a third monthly loss, the worst run since the period to October 2008.Base - MetalsCopper declined for second day after Spain’s credit rating was downgraded and China’s official Xinhua News Agency said the nation had no plans to introduce stimulus measures on the scale unleashed in 2008. The three-month delivery contract on the London Metal Exchange dropped as much as 0.7 percent to $7,614.75 a metric ton, before trading at $7,618.75 by 9:49 a.m. Shanghai time. The contract is poised for a third monthly decline, losing 9.3 percent. Copper for September delivery on the Shanghai Futures Exchange fell 1.1 percent to 55,470 ($8,735) a ton.Spain’s sovereign credit rating was cut by Egan-Jones Ratings Co. to B from BBon the country’s deteriorating economic outlook. In 2008, policy makers introduced a fiscal stimulus of 4 trillion Yuan. The July-delivery contract on the Comex dropped 0.6 percent to $3.442 a pound. On the LME, zinc declined 0.7 percent to $1,902 a ton, and tin fell 1.2 percent to 19,960 a ton. Aluminum was unchanged at $2,017 a ton, while nickel climbed 0.9 percent to $16,700 a ton. Lead fell 0.3 percent to $1,940.EnergyOil traded near the lowest settlement in almost a week in New York before a government report that may show crude stockpiles climbed to the highest level since 1990 in the U.S., the world’s biggest consumer of the commodity. Futures were little changed after falling for the first time in three days yesterday. U.S. inventories probably rose 800,000 barrels to 383.3 million last week. Prices slid yesterday after Spain’s sovereign credit rating was cut by Egan- Jones Rating Co and BNP Paribas SA reduced its 2012 forecast for West Texas Intermediate oil. Crude for July delivery was unchanged at $90.76 a barrel in electronic trading on the New York Mercantile Exchange at 9:27 a.m. Sydney time. The contract yesterday slid 10 cents to $90.76, the lowest close since May 24. Prices are down 13 percent this month, the biggest monthly drop since May 2010.Brent oil for July settlement fell 43 cents, or 0.4 percent, to $106.68 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract’s premium to West Texas Intermediate closed at $15.92. BNP Paribas cut its 2012 price forecast for New York crude by $7 to $100 a barrel and its estimates for Brent crude by $4 to $115 a barrel, as Europe’s sovereign debt crisis worsened, according to an e-mailed report yesterday. Prices will still advance in the third quarter because of sanctions against Iran and shrinking spare production capacity in the Organization of Petroleum Exporting Countries, the bank said. Oil fell with the euro yesterday after Egan-Jones cited a deteriorating economic outlook in Spain for its decision to lower the nation’s credit rating to B from BB-. A weaker European currency increases the cost of crude priced in dollars.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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