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.
Gold fell for a fourth day and was set for a third weekly drop this month as concern that Europe’s debt crisis will escalate lifted the dollar, cutting demand for alternative investments. Palladium dropped to a six-month low. Spot gold lost as much as 0.5 percent to $1,551.35 an ounce and was at
$1,552.80 at 11:30 a.m. in Singapore. Bullion declined 2.5 percent this week as the dollar advanced 1.3 percent against a six-currency basket including the euro, which is poised for its biggest weekly drop in five months versus the U.S. currency. Gold has rebounded from an intraday low of $1,526.97 on May 16, which was the cheapest since Dec. 29.European manufacturing and services output dropped in May, German business confidence declined and Britain’s first-quarter contraction was deeper than previously estimated. The euro-area unemployment rate climbed to 11 percent in April, the highest in data compiled by Bloomberg back to 1990, economists forecast before the June 1 report.August-delivery bullion slid 0.3 percent to $1,554.80 an ounce on the Comex in New York. Futures rose for the first time in four days yesterday alongside stocks and other commodities including oil as Italian Prime Minister Mario Monti said Greece will probably stay in the euro and a majority of the region’s leader’s support issuing a joint bond to fight the debt crisis.Base - MetalsCopper rose in New York, rebounding from the biggest drop in seven weeks, on renewed concern that the world’s mines will fail to keep pace with demand in China, the largest global buyer of the metal. China’s government signaled a commitment to growth for the second time in four days. Mine output at Codelco, the largest producer, fell 10 percent in the first quarter because of lower ore grades. Output and inventory issues are also going to help keep a floor under copper prices.” Copper futures for July delivery rose 1 percent to settle at $3.4285 a pound at 1:11 p.m. on the Comex in New York. Yesterday, prices slid 2.6 percent, the most since April 4. China’s leaders pledged to intensify “fine-tuning” of policies, indicating a commitment to growth as domestic demand slows and the euro-area debt crisis escalates. Manufacturing in the country may shrink for a seventh month in May, a private survey showed, reinforcing the need for stimulus.Copper stockpiles monitored by the London Metal Exchange, down 40 percent this year, fell 0.7 percent to 224,075 metric tons, daily exchange figures showed. On the LME, copper for delivery in three months rose 1 percent to $7,610 a metric ton ($3.45 a pound). Nickel, aluminum, zinc, tin and lead rose in London.EnergyOil rebounded from a seven-month low as world powers and Iran worked to overcome “obstacles” at their second round of meetings on the country’s nuclear program. Prices climbed as much as 1.8 percent as the talks resulted in no binding pledges from Iran to ensure its atomic work is peaceful. Catherine Ashton, the European Union’s foreign policy chief, said in Baghdad that negotiations are “moving forward” even as “obstacles” stand in the parties’ way. Futures pared gains as U.S. equities dropped. “Iran’s tactic is to make gestures that they want to talk but there is absolutely nothing real.Crude for July delivery gained 38 cents, or 0.4 percent, to $90.28 a barrel at 2:16 p.m. on the New York Mercantile Exchange. It’s the fourth time prices have risen this month. Futures settled at $89.90 a barrel yesterday, the lowest closing price since Oct. 21. Brent oil for July settlement rose 59 cents, or 0.6 percent, to $106.15 a barrel on the London-based ICE Futures Europe exchange. Iran presented a five-point plan and was willing to discuss its production of uranium enriched to 20 percent levels, Ashton said at a Baghdad press conference. The so-called P5+1 group, made up of Chinese, French, German, Russian, U.K. and U.S. negotiators, is pressuring Iran to immediately halt output of the uranium.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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