Intraday Outlook 09.10.2012


Precious Metal:

U.S. gold futures most-active contract for December settled down 0.3 percent, or $5.10, at $1,775.70 an ounce. Gold remained down on Tuesday continuing its downfall from Monday stronger dollar  investors focused on the likelihood of better economic recovery in the United States than in Europe and Asia in the near-term. The World Bank cut its economic growth forecasts for the East Asia and Pacific region and said there was a risk the slowdown in China could worsen and last longer.Gold inched up higher on Tuesday as a correction after two continuous days of downfall. Adding to it was a safe haven appeal of Gold due to worries in Eurozone’s Spanish region. Indian gold inched up by 0.53% on Monday a biggest gain in three weeks. Weaker rupee against dollar outperformed downfall in international market. Gold for December delivery on the Multi Commodity Exchange (MCX) was 0.53 percent higher at INR31,331/10gms. After hitting the low of INR31,081/10gms.



Energy:  

U.S. November crude dropped 55 cents, or 0.61 percent, to settle at $89.33 a barrel, ending below the $89.88 100-day moving average and having swung from $88.21 to $89.89. US crude futures fell for the second straight day on Monday mainly due to concerns that slower economic growth in China and the debt crisis in Europe will reduce the demand for petroleum and oil. Tension increase in Middle East as Turkish President Abdullah Gul said on Monday the "worst-case scenarios" were now playing out in Syria and Turkey would do everything necessary to protect itself, as its army fired back for a sixth day after a shell from Syria flew over the border. US crude showed upward movement today as increasing geopolitical risks from Middle East increased the supply concerns and has overlapped global economic concerns of slow growth. U.S. natural gas futures ended higher on Monday, backed by forecasts for mostly chilly U.S. weather this week that should stir more heating demand despite concerns about record high supplies and an outlook for milder mid-month forecasts. Front-month gas futures on the New York Mercantile Exchange ended up 0.7 cent at $3.403 per million British thermal units after trading between $3.327 and $3.431.

Base Metals:

In New York, COMEX copper for October delivery remained flat to settle at $3.7940 per lb, after dealing between $3.8000 and $3.7840. Copper continued its downfall on Monday as stronger dollar reduced the demand for copper and concerns for demand from top consumer China amid global growth. The OECD on Monday stated  the outlook for the world's major economies including the United States and Germany has deteriorated slightly, although China may be stabilizing after a recent slowdown. London copper moved up 0.2% on Tuesday, traders are still cautious ahead of Chinese data coming this week to know the health of the world's second largest economy and top consumer of copper. Benchmark three-month copper on the London Metal Exchange was untraded at the close, but bid at $8,180, down from Friday's close of $8,295

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