Bullion to continue Bull Run, Base metals on firm path
NEW DELHI-INDIA (Aug 28) Stunning Bull Run in the bullion counter on domestic bourses is expected to persist further as weakening rupee and firm overseas markets continue to support the price higher. Gold can move in range of 33500-35500 while Silver can move in range of 56000-58000 in MCX.
Gold traded near the highest level since May after a four-day rally as speculation that the U.S. may lead military strikes against Syria within days spurred investors’ demand for a haven. The U.S., France and Britain stepped closer to a strike against Syria, laying the legal groundwork to justify military action, moving forces into place and rounding up allies.
Base Metals: Base metal complex may also remain on firm path as investor’s eye the pending home sales data today. Copper may trade in range of 490-510 in MCX. Lead may trade in range of 145-155 while zinc may trade in range of 127-133 in near term. Aluminum may remain in range of 122-127.
Copper advanced as China eased rules on overseas securities investments and after U.S. consumer confidence added to signs of improving demand in the biggest economy. China’s State Administration of Foreign Exchange announced changes yesterday allowing qualified domestic institutional investors, who manage investment abroad on behalf of clients, to freely remit funds in yuan or foreign currencies into or out of the country, and also simplified application processes.
Energy: Strong upside momentum may continue in Crude oil counter due to Middle East concerns as it can trade in range of 7350-7700 in MCX as investor’s eye the EIA inventory data today. West Texas Intermediate crude surged to the highest price since May 2011 on concern that conflict in Syria may spread to other parts of the Middle East and threaten oil supplies. Libya's largest western oilfields closed when an armed group shut down the pipeline linking them to ports, its deputy oil minister said on Tuesday, reducing its oil output to a trickle.
Total Libyan oil output would be just under 200,000 barrels per day from pre-war levels of around 1.6 million bpd, according to a Reuters estimate, the worst disruption since the civil war in 2011.Natural gas can extend its upside momentum as it can test 245 in MCX.