Strong global cues to pull up bullion, Base metals remains firm

NEW DELHI-INDIA (Aug 27)   Bullions: Bullion counter may remain on firm note tracking strong international markets and weakening domestic currency rupee. Gold can move in range of 31600-32100 while Silver can move in range of 53000-54600 in MCX.

Gold fluctuated after climbing to the highest level in more than two months as investors weighed the outlook for stimulus in the U.S., with a drop in durable-goods orders adding to signs that debt-buying may be sustained. COMEX Gold tumbled 16 percent this year amid speculation that the Federal Reserve will begin cutting its $85 billion a month asset-purchase program. Minutes released on Aug. 21 showed that policy makers were comfortable with Fed Chairman Ben S. Bernanke’s plan to taper this year if the economy strengthens.

Base Metals: Base metal complex may also remain on firm path as investor’s eye the consumer confidence data scheduled today. Copper may trade in range of 470-480 in MCX. Lead may trade in range of 141-143 while zinc may trade in range of 124-127 in near term.

Copper fell for the first time in three days as a bigger-than-expected drop in U.S. durable-goods orders stoked concern demand in the world’s second-biggest user will slow and as tensions mounted in the Middle East. Secretary of State John Kerry said the U.S. will hold Syria accountable for using chemical weapons against its people. Equities fell in Asia.

Energy: Crude oil counter can trade with upside bias as it can test 6950 in MCX as investors eye the API inventory data today. West Texas Intermediate rose for the third time in four days after the U.S. said it will hold the Syrian government accountable for the use of chemical weapons, fanning concern that unrest in the region may disrupt crude supplies.

The evidence is “undeniable” that Bashar alAssad’s regime regime used chemical weapons against residents of a Damascus suburb last week, U.S. Secretary of State John Kerry said. U.K. Foreign Secretary William Hague said Britain is convinced Assad was behind the Aug. 21 attack in Ghouta, outside Damascus, and that there was agreement with the U.S. and France on the need to respond. Natural gas can extend its upside momentum as it can test 230 in MCX.