Bullion to trade sideways, Crude Oil positive
MUMBAI-INDIA (Aug 1) Bullion counter may remain sideways with some short covering can be seen after yesterday sharp fall. On domestic bourses some strength in the local currency rupee can cap the upside. Today ECB rate decision and US initial jobless claim data will give further direction to the prices. Gold (Oct) contract can move in range of 27800-28300 in MCX. Silver (Sep) contract can move in range of 41000-42500 in MCX. Base Metals: Base metal complex may continue yesterday gains tracking firm international cues as investors will eye the US ISM manufacturing data later today. Copper rose to the highest level in almost a week after China’s official manufacturing data unexpectedly strengthened, suggesting demand from the world’s largest consumer is improving.
The Purchasing Managers’ Index was at 50.3, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today. Copper may trade in range of 416-425 in MCX. Lead may trade in range of 124-128 while zinc may trade in range of 110-113 in near term. Aluminum may remain in range of 107-110.
Energy: Crude oil may remain on positive path while Natural gas prices will get further direction from the weekly inventory data today. West Texas Intermediate oil advanced for a second day, extending the biggest monthly gain since August 2012, as manufacturing unexpectedly strengthened in China, the world’s second-largest crude consumer.