VINACHEM

Precious Metals
US gold futures trended downwards marginally to $1,525.73 as dollar gained in strength and commodity demand slowed on concerns of slowdown in the global economy. The yellow metal has fallen 0.7% on week. The August-delivery contract decreased 0.2 percent to $1,527.60

Cash silver lost 2.4 percent this week and was set for a third weekly decline. Cash silver declined 0.7 percent to $35.32 an ounce after ending last week at $36.1825. Spot palladium gained 0.4 percent to $760.50 an ounce, trimming its weekly loss to 6.4 percent. Platinum rose 0.4 percent to $1,765.75 an ounce, reducing this week’s loss to 3.7 percent.

In Indian market, MCX August Gold Futures opened the week at Rs.22560 and fell by 0.27% to 22622 after after rallying to 22628, while October contract declined by 0.18% to 22859 per 10 Grms.

MCX Silver July opened this week at Rs.54208 and ended lower by 1.03% at Rs 53645 on profit booking at higher price levels. The contract hit a low of 51833 this week. September contract fell from Rs 55134 to Rs 54486 after hitting a low of 52682.

Crude Oil
Crude oil dropped this week on doubts European efforts to resolve the Greek debt crisis will succeed, and on concern of reduced economic growth and fuel demand.

Crude oil for July delivery dropped $1.94 to $93.01 a barrel on the New York Mercantile Exchange. On Friday, Brent oil for August delivery declined 81 cents, or 0.7 percent, to end the session $113.21 a barrel on the London-based ICE Futures Europe exchange. The price is 44 percent higher than a year ago.

Oil may fall next week on signals that economic growth in theU.S.andChinawill slow, curbing fuel use in the world’s biggest crude-consuming countries, according to a Bloomberg report.

The Organization of Petroleum Exporting Countries will cut crude-oil loadings for the first time in seven weeks as summer demand for driving fuel in the northern hemisphere is set to pass its peak, according to tanker-tracker Oil Movements.

U.S.oil supplies rose to the highest level in 31 years for the month of May as refineries processed less crude amid a decline in gasoline demand, according to the American Petroleum Institute. Inventories increased for a fifth consecutive month to 367.6 million barrels, a record in data going back to 1980, the industry-funded group said today in a monthly report.

InIndia, at MCX, Crude oil July contract fell 6.3% from Rs 4487 to Rs 4204 after hitting a low of 4172 while August contract declined 16.63% per cent to Rs.4235 after hitting a low of Rs.4224.

Natural Gas
Natural gas futures climbed for the first time this week in global markets on forecasts of above-normal temperatures that may boost demand for the power-plant fuel.

U.K.winter natural gas fell for a fourth day in its longest losing streak since February as Brent crude slumped.
Natural gas for July delivery rose 2.6 cents, or 0.6 percent, to $4.438 per million British thermal units at 9:39 a.m. on the New York Mercantile Exchange. The futures have gained 0.8 percent this year.

Hot weather may increase air conditioner use in the next two weeks. The high temperature inNew Yorkon June 22 may be 86 degrees Fahrenheit (30 Celsius), 5 degrees above normal, according to AccuWeather Inc. inState College,Pennsylvania. The high inAtlantamay be 94, 7 above normal.

Cooling demand in theU.S.may be 10 percent above normal from June 23 through June 27 a meteorologist at Weather Derivatives inBelton,Missouri, said in a note to clients today.
Power plants use about 30 percent of the nation’s gas supplies, according to the Energy Department.

In India at MCX, Natural gas July contract closed down by 8.31% to Rs.198.50 per mmBtu, after hitting a low of 197.80 per mmBtu, whereas the August contract decreased to Rs.202.10 per mmBtu, a decline of 7.67%.

Base Metals
Copper climbed on optimism that China’s demand is improving, tempering concern aboutEurope’s debt crisis. Zinc and nickel also gained.
Three-month copper on the London Metal Exchange gained for the first day in three, rising as much as 0.7 percent to $9,125 a metric ton. The metal last traded at $9,077.50 inSingapore. It has risen 1.5 percent this week. Zinc, nickel and tin also rose on better-than-estimatedU.S.jobless claims and housing starts.
September-delivery copper inNew Yorkdeclined 0.4 percent to $4.1205 a pound, while August-delivery metal on the Shanghai Futures Exchange added as much as 0.6 percent to 68,540 yuan ($10,591) a ton.

Zinc advanced 0.4 percent to $2,214 a ton, nickel climbed 0.3 percent to $21,670 a ton and tin gained 1.2 percent to $25,200 a ton. Aluminum fell 0.4 percent to $2,545.75 a ton while lead fell 0.2 percent to $2,476 a ton.
In India at MCX, copper August contract rose frm Rs.406.25 to Rs.411.70 per Kg higher by 1.34 %, after hitting a high of 418 per Kg whereas the November contract ended higher by 1.74% to Rs.417.60 per Kg after hitting a high of 424.