Bullion to face profit booking; Base metals may slip on sell off
MUMBAI-INDIA (Aug 29) Stronger local currency may lead to profit booking in the bullion counter on domestic bourses coupled with weaker overseas cues. Gold can move in range of 32500-34000 while Silver can move in range of 54000-57000 in MCX.
Gold retreated from a threemonth high spurred by tensions over Syria as U.S. economic data may reinforce the case for the Federal Reserve to slow stimulus and a technical indicator showed that prices were set to decline. Gold declined 16 percent this year amid speculation that the Fed will reduce the stimulus that helped prices gain for a 12th year in 2012.
Base Metals: Base metal complex may also slip lower on profit booking tracking stronger local currency .Meanwhile investor’s eye the US GDP data and jobless claim data later today. Copper may trade in range of 470-490 in MCX. Lead may trade in range of 143-150 while zinc may trade in range of 125-130 in near term.
Aluminum may remain in range of 119-125. Copper dropped for a third day on mounting tensions in Syria before a report that may show the U.S. economy grew more than previously estimated, adding to the case for the Federal Reserve to taper stimulus. Copper for delivery in December on the Shanghai Futures Exchange declined 0.3 percent to 52,200 yuan ($8,528) a ton. The contract for delivery in December fell 0.2 percent at $3.305 a pound on the Comex in New York.
Energy: Crude oil counter may dip lower tracking weak global markets while natural gas investors eye the weekly inventory data scheduled today. Crude oil can trade in range of 7200-7600 in MCX while Natural gas can move in thin range of 232-242 in MCX.
West Texas Intermediate oil fell from the highest settlement in more than two years, dropping for the first time in three days. U.S. crude stockpiles increased by 2.99 million barrels last week, a government report showed. Futures slipped as much as 0.9 percent in New York after surging yesterday to the highest level since 2011 on concern that the conflict in Syria may spread and threaten oil supplies from the Middle East.
The U.S. and the U.K. said they are prepared to take military action against the nation without authorization from the United Nations Security Council after Russia objected to a UN resolution.