Updates on gold, base metal, crude oil: GEPL Capital

GEPL Capital has come out with its report on bullions, base metals and energy. According to research firm oil in New York fell from a three- month high on concern that European leaders will fail to calm the region’s sovereign debt crisis.

Bullion

Gold is poised to gain for a fifth day in the best run since June on speculation that minutes from the Federal Reserve’s latest meeting may point to additional stimulus as investment holdings remain near an all-time high. Immediate-delivery gold was little changed at $1,621.80 an ounce at 11 a.m. in Singapore after gaining 1.3 percent in the preceding four sessions. Exchange-traded product holdings totaled 2,432.33 metric tons on Aug. 20, compared to the record 2,433.31 tons on Aug. 17, according to data tracked by Bloomberg. The Federal Reserve is due to publish minutes tomorrow of the meeting that ended Aug.

December-delivery bullion was little changed at $1,623.80 an ounce on the Comex in New York. In Europe, Luxembourg Prime Minister Jean- Claude Juncker, head of the euro group of finance ministers, visits Greece tomorrow for talks on the nation’s fiscal-adjustment program. German Chancellor Angela Merkel and French President Francois Hollande meet in Berlin on Aug. 23 to discuss the debt crisis. Spot silver was little changed at $28.7525 an ounce after losing as much as 0.4 percent to $28.6738.

Base-Metals

Copper declined for the first time in three days amid concern that rising home prices in China, the largest user, may reduce scope for the government to stimulate the economy while curbing speculation. Metal for delivery in three months fell as much as 0.9 percent, the most in a week, to $7,474.75 a metric ton on the London Metal Exchange, before trading at $7,486.50 by 3 p.m. Shanghai time. Open interest in LME copper futures declined to 399,153 contracts as of Aug. 15, the lowest since January 2010, bourse data showed. China’s new-home prices rose in 49 of the 70 cities tracked by the government in July from June.18. That was the most since May last year and compared with 25 cities in June. China may expand a property tax trial and raise the “threshold” for home pre- sales if housing prices rebound too fast, the Shanghai Securities News reported today, citing unidentified people.

Copper for December delivery on the Shanghai Futures Exchange closed little changed at 54,630 Yuan ($8,591) a ton. December-delivery copper dropped 0.4 percent to $3.4155 a pound on the Comex in New York. Netshort positions, or wagers on falling prices, held by funds were 10,775 futures and options contracts as of Aug. 14, compared with 8,203 a week earlier. On the LME, aluminum, zinc, nickel, and lead declined, while tin was little changed.

Energy 

Oil in New York fell from a three- month high on concern that European leaders will fail to calm the region’s sovereign debt crisis. Futures declined as much as 1 percent after Germany’s Bundesbank stepped up criticism of the European Central Bank’s plan to embark on potentially “unlimited” government bond purchases. Europe’s leaders plan a week of shuttle diplomacy to help resolve the situation, as Der Spiegel magazine reported that the ECB is considering a plan to cap bond yields.

Crude oil for September delivery fell 50 cents, or 0.5 percent, to $95.51 at 1:44 p.m. on the New York Mercantile Exchange. The contract ranged from $95.02 to $96.53, the highest level since May 11. September oil expires tomorrow. The more actively traded October contract declined 51 cents to $95.81. Brent oil for October settlement fell 8 cents to $113.63 on the London-based ICE Futures Europe exchange. The European benchmark may retain a premium over West Texas Intermediate oil, the grade traded in New York, because of oilfield maintenance in the North Sea. Shipments of the four crude streams that make up Dated Brent will tumble next month, loading programs obtained by Bloomberg News indicate, amid a scheduled overhaul at the Buzzard oilfield.

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