Market Update (Metals & Energy)

Bullions: Bullion counter is expected to remain sideways with some profit booking can be seen at higher levels. Gold can trade in range of 26700-27200 while silver can trade in range of 44400-45300 in near term. Gold futures fell, trimming the biggest weekly gain in 15 months, as the U.S. economy expanded less than forecast, driving commodities lower and crimping demand for the precious metal as a hedge against inflation. Investors cut assets in gold-backed exchange-traded products to 2,294.5 metric tons yesterday, the lowest since October 2011. The dollar fell versus the majority of its 16 most-traded peers after U.S. gross domestic product increased less than forecast in the first quarter, adding to concern the world’s biggest economy is struggling to grow. Base Metals: Base metals complex may also remain choppy on mixed note. Copper fell more than 2 percent on Friday after two days of gains as some investors closed their positions ahead of a holiday in China next week and after U.S. first-quarter growth numbers missed analysts' Forecasts. There's also a lot of holiday next week in China, so there would have been some profit-taking." China's markets will be closed on Monday, Tuesday and Wednesday next week for Labour Day holidays. Copper may trade in range of 375-385 in MCX while zinc may trade in range of 100-102 and Lead can also trade in range of 108-110. Nickel may trade in range of 815-830 in MCX and while Aluminum can move in range of 99-103. Recent weak economic data have affected the market in two separate ways capping gains due to uncertainty about demand from a sluggish global economy but also providing some support recently after signals that the European Central Bank could cut rates as soon as next week. Energy Crude oil counter may witness some profit booking as it can trade in range of 5040-5100 in MCX. West Texas Intermediate crude fell, trimming the biggest weekly increase since June, as the U.S. economy grew less than expected in the first quarter. The U.S. grew at a faster pace in the first quarter than the fourth, when it gained 0.4 percent. Consumer spending, the biggest part of the economy, climbed by the most since the three months ending in December 2010.Natural gas can trade sideways on mixed fundamentals as it can trade in range of 225-232 in MCX. The number of gas rigs in the U.S. fell for the first time in three weeks, declining by 13 to 366, according to Baker Hughes Inc.