Bullion to trade sideways; Base metals may trade positive
MUMBAI-INDIA (Aug 10) Bullion counter may trade sideways on mixed path .On domestic bourses some strength in the local currency rupee can cap the upside .Overall Gold can move in range of 27700-28100 in MCX. Silver can move in range of 42000-43000 in MCX. Gold rose on Friday on an oil rally and falling U.S. equities, with bullion notched a second consecutive weekly gain due to uncertainty over when the U.S. Federal Reserve will reduce its economic stimulus policy. Speculation the central bank could start tapering its $85 billion monthly bond purchases as soon as next month knocked gold to a three-week low earlier this week.
Base Metals: Base metal complex may trade with upside bias .Copper may trade in range of 436-444 in MCX. Lead may trade in range of 130-133.50 while zinc may trade in range of 114-116.50 in near term. Aluminum may remain in range of 110-112.
Copper rose to its highest in two months on Friday after upbeat Chinese factory data added to signs of steadying growth in the world's top consumer of metals. A run of bullish economic numbers from China in the past two days has eased concerns over a slowdown there, which could have derailed growth under way in the United States and hopes of a European recovery, and given some investors reasons to buy.
Energy: Crude oil counter can trade with upside bias while natural gas may dip lower and can test 195 in MCX. U.S. crude oil futures finished sharply higher on Friday reversing five days of losses in the largest one-day percentage gain in a week on signs of rising Chinese demand and concerns about supply disruptions in the North Sea and the Middle East.
Crude oil imports rose to a record, although implied oil demand softened from a four-month high in June. Bullish news out of China coupled with supply disruptions supported prices. The International Energy Administration (IEA) said it expected Libya's oil output to show a drop of 600,000 barrels per day to 400,000 bpd in early August, its lowest since the 2011 conflict.
