OUTLOOK FROM THE FUNDAMENTAL DESK: PRECIOUS METALS Gold prices should move higher on weaker dollar after the minutes of their last policy meeting show they are struggling to come to grips with the dual threats of a stronger dollar and a global slowdown. India’s September gold imports have doubled from last month to $4 billion as the demand tends to rise because of the festive season and the onset of the wedding season. Silver iShares fell 0.55% at 10711 tonnes while holdings in the SPDR Gold Trust, the biggest gold-backed ETP, sank to 761 metric tons, the least since December 2008. India’s Gold imports sharply rose in the September month due to festival season and lower gold prices. Maintain buy on dips in gold BASE METALS Base metals would trade negative during the day due to weakness in the second largest economy Europe where in Germany is posting poor economic data rekindled global growth concerns. German economic sentiment fell below zero for the first time in nearly two years in October, suggesting Europes largest economy is reeling from crises abroad and a weak euro zone, while weak German data has also hit the mood. There are also growth concerns about over an extended stagnation in Europe that could pull the other economies down. Growth in Chinas services sector weakened slightly in September which slowed to 53.5 from 54.1 last month. US economy also not posting good economic data and results. Maintain sell on rise in Base metals. ENERGY Crude oil prices are expected to trade negative for intraday on gloomy economic outlook in Europe and China which has curbed oil demand. Libya increased its oil output to 800,000 barrels today. IEA also trimmed its demand forecast for next year. Saudi Arabia and Iran, two largest OPEC members agrees to sell Maintain sell on rise in crude oil.
Posted on: Thu, 16 Oct 2014 06:46:32 +0000
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