Bullion to trade volatile; Base metals to slip further
NEW DELHI-INDIA (Aug 30) Bullion counter is expected to trade on volatile path tracking mixed overseas cues. Today local currency weakened after yesterday gains. Gold can move in range of 32500-34500 while Silver can move in range of 54500-57000 in MCX. Today investors will focus on the US Michigan Confidence data.
Gold fell, trimming a fourth weekly gain, after better-than-expected U.S. economic data backed the case for the Federal Reserve to slow stimulus just as tensions over Syria eased, with U.K. lawmakers rejecting military action. U.S. President Barack Obama is still prepared to proceed with a limited military strike on Syria even without U.K. support or an endorsement from UN Security Council, the New York Times reported, citing unidentified administration officials. Obama hasn’t made a final decision, according to the officials.
Base Metals: Base metal complex may also slip lower on profit booking as investor’s eye the EUR Euro-Zone unemployment rate and Euro zone industrial confidence data today afternoon. Copper may trade in range of 476-490 in MCX. Lead may trade in range of 147-152 while zinc may trade in range of 126-132 in near term. Nickel may remain in range of 940-960 in MCX while aluminum may trade in range of 120-123.
Copper was poised for the biggest monthly advance since September as economic reports from Japan to the U.S. signaled the global recovery is strengthening and prospects of an imminent strike against Syria eased. Japan’s consumer prices rose in July at the fastest pace since 2008, jobless rate fell and industrial production increased. The U.S. economy grew more than forecast last quarter. Concern conflict with Syria will disrupt Middle East oil supplies eased as U.K. Prime Minister David Cameron failed to gain parliamentary backing for military action.
Energy: Crude oil counter may dip lower tracking weak global markets while natural gas can see some lower level buying. West Texas Intermediate crude fell for a second day after U.K. lawmakers rejected a motion for military action against Syria, reducing the prospect of an imminent strike and easing concern that unrest will disrupt Middle East supplies.
The House of Commons rejected a proposal put forward by U.K. Prime Minister David Cameron seeking a military response to what he says is evidence of the use of chemical weapons by Syria. The global oil market is adequately supplied and doesn’t require the release of emergency stockpiles, according to the International Energy Agency. Crude oil can trade in range of 7200-7500 in MCX while Natural gas can move in thin range of 240-250 in MCX.