Daily Report for 2nd August 2012

Gold fell in choppy trade on Wednesday after the Federal Reserve issued a policy statement that dashed investor hopes for new monetary stimulus, even though it acknowledged that the US economy has lost momentum. Silver and platinum group metals, used heavily in industry, also fell after earlier reports showed that a Chinese factory purchasing managers' index (PMI) fell to an eight-month low and the US ISM survey of the American manufacturing sector shrank in July. At the end of a two-day policy meeting, the US central bank disappointed investors who had hoped for a third round of government bond purchases, also called quantitative easing or QE3. Spot gold was down 0.7 per cent at $1,602.20 an ounce by 3:08 p.m. EDT (1908 GMT), after briefly falling toward $1,590 immediately after the Fed Open Market Committee (FOMC) statement. Bullion logged its third straight daily loss as investors unwound a premium built on hopes of further US monetary easing. US gold futures for December delivery settled down $7.30 an ounce at $1,607.30, with trading volume about 5 per cent below its 30-day average, preliminary Reuters data showed. Silver fell 1.6 per cent to $27.47 an ounce. It was up more than 4 per cent in a four-day rally last week. Oil traded little changed in New York after the biggest gain in almost two weeks before the European Central Bank meets to discuss steps to contain the region’s debt crisis and after U.S. stockpiles shrank. Oil for September delivery was at $88.86 a barrel, down 5 cents, in electronic trading on the New York Mercantile Exchange at 12:24 a.m. Sydney time. The contract yesterday rose 85 cents to $88.91, the biggest gain since July 19. Prices are 10 percent lower this year. Brent crude for September settlement was at $106.03, up 7 cents, on the London-based ICE Futures Europe exchange. The European benchmark’s premium to West Texas Intermediate was at $17.18 from $17.05 yesterday, the widest since May. U.S. crude inventories shrank 6.5 million barrels last week, data from the Energy Department showed. U.S. gasoline supplies dropped 2.2 million barrels last week, the Energy Department report showed.

Daily Report

COM RADE

      Commodities Market Summary

              

             Levels for the Day

Name	RES2	RES1	S/R	SUP1	SUP2	RECOMMENDATION
ALUMINIUM (31AUG12)	105.55	104.6	104.1	103.15	102.65
COPPER (31AUG12)	424.95	420.85	418.15	413.95	411.25
CRUDEOIL (20AUG12)	5057	5019	4955	4917	4853
GOLD (04AUG12)	29827	29717	29629	29519	29431
SILVER (05SEP12)	54482	53827	53244	52589	52006
LEAD (31AUG12)	107.55	106.55	105.95	104.85	104.25
NATURALGAS (28AUG12)	183.85	179.75	177.25	173.15	170.65
NICKEL (31JUL12)	896.95	887.35	882.25	872.65	867.55	Buy at 882/884 SL 875 TGT 892/896
ZINC (31JUL12)	103.85	102.85	102.05	101.05	100.25

     Important Events for the Day

2nd AUG 2012 (Time – IST) EUR Euro-Zone Producer Price Index (YoY) (JUN) at 14:30 GBP BOE Asset Purchase Target (AUG) at 16:30 GBP Bank of England Rate Decision (AUG 2) at 16:30 EUR European Central Bank Rate Decision (AUG 2) at 17:15

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