Golden Investment Research (P) Limited
Bullions: Bullion counter may remain subdued as the rise in greenback can prompt some profit booking in this counter. The dollar index rose to its highest since September 2010 at the expense of a battered euro, which sank to a 16-month low against the greenback and an 11-year trough versus the yen. A busy week in the euro zone will start with a meeting between German Chancellor Angela Merkel and French President Nicolashttp://www.goldennifty.com/ Sarkozy on Monday on measures to boost growth in the debt-ridden region. Market participants will also closely watch debt auctions later this week by Italy and Spain, seen as a test if investors are willing to pour more money into the euro zone, now in its third year of the debt crisis .Gold can trade in range of 27,600-27,900 in near term.
Base Metals: Base metals may also slip lower due to selling pressure at current levels as http://www.goldennifty.com/investors will keenly eye the euro zone crises. Copper may also trade in thin range of 398-405. Copper slipped on Monday, reversing gains in the previous session, as concerns over slowing growth in the euro zone strengthened the U.S. dollar, making commodities priced in the unit more expensive in other currencies. Following a year of tumultuous highs and lows, copper prices are expected to improve from the depressed levels at the end of 2011 and steady in 2012, as the market begins to balance rising demand by addressing supply shortfalls. Speculators in copper further reduced bearish bets in the red metal to the lowest level since the second week of November according to CFTC data.
Energy: In energy complex crude futures can show marginal slide while natural gas may further slump lower. Oil fell for a third day in New York as bets that Europe`s debt crisis will worsen and curb fuel demand countered concern that tension with Iran may disrupt Middle East crude exports. Futures declined as much as 0.5% before German and French leaders meet in Berlin today as they seek to craft a plan for rescuing the euro over the next three months. The U.S. will act to reopen the Strait of Hormuz if Iran blocks the channel. Natural gas prices can again test 160 in near term.
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