INTRADAY OUTLOOK

INTRADAY OUTLOOK

Bullions ⇒  

Gold inched up today morning, recovering from a one-week low hit in the previous session when the precious metal dipped together with other commodities as weak German data fanned worries about global growth, giving the dollar a boost.  Still, the medium-to-long-term price outlook remains bullish due to major central banks' "open-ended" commitment to monetary stimulus. Gold enjoyed price forecast upgrades and renewed interest from money managers and retail investors through exchange-traded funds. Goldman Sachs made a bullish call for commodities, with industrial and precious metals among its top picks. 

Base Metals ⇒  

Copper prices seen rebounding today morning, after London copper came off a one-week low in the prior session, but gains are expected to be capped by worries over the global economy and on caution ahead of next week's holiday in top metals consumer China. The Shanghai Futures Exchange (ShFE) will be closed from Sept. 29 to Oct. 7. For the mid-Autumn and Chinese National Day holidays and it will temporarily hike trading margins for all its futures contracts from Sept. 28 to control price volatility. Copper's fall came after data on German business confidence were reported weaker than expected, and Spain continued its public silence about an official bailout request. A weekend meeting also showed French and German leaders at odds over plans to integrate Europe's rattled banking system. 

Energy ⇒ 

Nymex Crude-oil futures retreated after several reports underscored sputtering economic growth in some of the world's biggest oil consumers, raising fresh concerns about demand. Crude oil has been especially volatile in recent weeks. Traders bought crude last week on the hope that a resolution of the debt crisis in Europe will increase economic activity and demand for oil. This weekend's argument between the leaders of France and Germany has popped that hopeful bubble. Press reports out of Asia indicate that growth in China is slowing down faster than previously thought. Widespread protests over a territorial dispute with Japan have disrupted production at many Japanese-owned factories in China while the ongoing leadership transition has suffered a few bumps along the way which have increased the overall level of uncertainty in China. This has added to negative sentiment on oil.