Gains in the precious metals eroded which they got yesterday. Spot gold took resistance at $942 an ounce and lost ground as dollar strengthened broadly ahead of monthly U.S. jobs data that investors expect to provide more clarity on the pace of economic recovery. Dollar recovered from three-week low as traders booked profits ahead of nonfarm payroll data and a policy announcement from the European Central Bank. The prices may show a volatile movement after the data was released, as investors seek to close their positions ahead of a long weekend in the United States. Physical demand for gold from the jewellery market, is showing some signs of stabilisation, but still remained weak as buyers in India waited for lower prices to enter into the market.
Crude Oil continued its fall today also and tested a level of $67.68 a barrel. U.S. fuel demand in four weeks ended June 26 dropped 5.8% from a year earlier, while demand for distillate fuel including heating oil and diesel, fell 9.4%, according to a Department of Energy report yesterday. The demand for oil seems to decrease as US unemployment is increasing. Oil output averaged 28.23 million barrels a day last month, up 55,000 from May, according to the survey of oil companies.
Base metals remained down today on back of fall in crude prices and lack of demand from western countries. The Institute for Supply Management’s factory index in the U.S. shrank in June at the slowest pace in 10 months, but still could not still provide support to the prices. China’s Purchasing Managers’ Index climbed to a seasonally adjusted 53.2 in June from 53.1 in May, as per the Federation of Logistics and Purchasing. For the second time in less than a month BHP Billiton has temporarily closed its Perseverance nickel mine in west Australia owing to rock falls around the site. BHP Billiton was forced to suspend mining temporarily. This is a fact which has been providing strength to the nickel prices.
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