Weaker rupee can support gold prices: Emkay

Emkay's research report on commodities

• US gold futures for June delivery settled down 0.47 percent or USD 6.5 at USD 1,377.60.
• Gold prices were down as investors remained cautious ahead of Bernanke’s speech over fears that Fed may wind down its economic stimulus program which hurt gold’s inflation hedge appeal.
• SPDR Gold Trust, the world's largest gold-backed exchangetraded funds holdings fell 0.82 percent to 1023.08 tonnes on Tuesday from 1031.50 tonnes on Monday.
• Gold prices are expected to move in a range as Bernanke’s outlook on US economy could give further direction to the stimulus program and impact gold prices.
• Gold in India is also likely to be in range. However a weaker rupee due to weak domestic markets can support prices.
• Gold for June delivery on the Multi Commodity Exchange (MCX) was up by 0.08 percent at INR 26,110/10gms and silver was down by 0.21 percent closing at INR 43,170/kg.

• US crude futures for June delivery ended down 75 cents or, 0.77 percent, at USD 96.18 per barrel.
• Crude prices were down pressured by rising gasoline stockpiles in US and as market are expected to be well supplied for the summers.
• Prices were also down as the API report said crude inventories rose by 459,000 barrels last week.
• However the downside in prices were limited as tensions in Syria continued and stoked fears that the civil war may spread to neighboring countries too.
• We expect crude oil prices to go down as high inventories and comfortable supplies are likely to put pressure on prices.
• US natural gas futures rose more than 2 percent on Tuesday, as warmer weather blanketing much of the nation boosted demand for air conditioning.
• Natural gas is expected to move in a range as moderate weather forecasts are likely to keep prices in check.
• Front-month gas futures on the New York Mercantile Exchange rose 10.2 cents, or nearly 2.5 percent, to settle at USD 4.192 per million British thermal units.

• In New York, COMEX copper for May delivery closed at USD 334.35 a tonne, down by USD 1.65, or 0.49 percent.
• Copper prices were down as China’s refined copper imports fell 33 percent from a year ago to hit 183,023 tonnes which raised demand concerns from top metal consumer.
• However, the downside was limited over concerns that the world's No.2 copper mine in Indonesia, could face a prolonged closure after one of the country's worst-ever mining disasters.
• Base Metals are expected to go up on optimism over demand from US and mine supply concerns.
• Three-month copper on the London Metal Exchange closed at USD 7,375 a tonne from USD 7,399 at the close on Monday.

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