re: Go GoldInternational commodities report AAP 28 International...

re: Go GoldInternational commodities report AAP 28 International commodities report Brought to you by>>>AAP 28/5
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In London, base metals at the London Metal Exchange settled mixed on Monday, pressured by light fund liquidation with activity subdued due to the Memorial Day holiday in the US.
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Lead made the most pronounced move, falling to a seven-and-a-half-month low at $451.50 a metric ton as local and bank selling emerged in reaction to Friday's failure to break above $465/ton and weakness elsewhere in the complex.
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Given that the selling was exaggerated by the thin conditions on Monday and the fact that the fundamental situation remains unchanged, dealers feel the support level will hold strong and expect the market to pull up toward $470/ton support on Tuesday.
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Copper, basis the three-month contract, recovered from a weak open at the support level at $1,610/ton to challenge $1,620/ton by the close, with sentiment boosted by a 2,175-ton stock fall.
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The move comes in the wake of a number of stock falls last week and suggests the physical demand situation for the metal is improving but some participants remain convinced that copper remains vulnerable to further losses short term.
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US durable goods orders last week emerged strongly while gross domestic product, although revised down to 5.6 per cent against the original 5.8 per cent, still represents strong economic growth.
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Dealers said they expected copper to hold in its $1,585-$1,640/ton range short term.
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A fall in aluminum stocks of 2,775 tons also buoyed sentiment in this market but prices only managed to muster enough momentum to push to the top of a $10 range by the close.
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The downside risks have been dampened by the presence of strong support at $1,340/ton but the potential for the reactivation of a number of idled production facilities in the Pacific Northwest continues to fuel a bearish medium term outlook.
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Trade buying was said to be apparent in the zinc market but this failed to prevent a fall to $763/ton while nickel traded in a tight range above $6,600/ton support.
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In London, gold remained above the key $320 an ounce support level on ongoing geopolitical uncertainty in thin late trade with US and many Far Eastern markets closed for public holidays, dealers said.
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"Trading last week saw continued safe haven investor interest as political tensions heightened in the Indian sub-continent and problems persisted in the Middle East," Rhona O'Connell at the World Gold Council said.
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However, Kevin Norrish at Barclays Capital said gold prices were being driven higher by speculative buying on the back of activity in the gold corporate sector.
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The bid for Australian AurionGold by Placer Dome has been a key driver for gold price strength, he said.
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"Given that this corporate activity still has some way to run it looks likely that gold price risks will continue to point higher," he said.
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In New York, Gasoil and Brent crude futures were down on Monday extending last week's losses in thin trading, brokers said.
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Front-month July Brent futures on London's International Petroleum Exchange settled 24 cents lower at $24.94 a barrel.
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The August contract shed 23 cents to settle at $24.95/bbl.
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Nearby June gasoil futures settled at $198.50 a metric ton, $2.75 down on the day.
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The July contract settled at $201.25 a ton, $2.00 lower.
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With the New York Mercantile Exchange closed for Memorial Day, volume in Brent and gasoil futures was well below average.
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There was some spread buying earlier on the Brent Jul/Aug spread, which moved from flat to plus four cents, said one broker.
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The oil complex fell last week on reports of a 4.6 to 5.6 million barrel a day build in US crude stocks, traders said.
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The inventory reports contributed to the perception that the market was "overdone on the upside" and due for a pullback, a trader said.
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Late in the session, July Brent fell below the $25.00/bbl mark, but failed to take out initial support at $24.90/bbl, the trader said.
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Meanwhile, a Gulf OPEC source said the Organisation of Petroleum Exporting Countries is unlikely to raise oil production at next month's meeting unless there are clearer signs of a recovery in oil demand.
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OPEC meets June 26 to review output targets for the third quarter.
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Volume was light with Brent trading 30,861 lots, including 4,399 exchange for physicals. Gasoil notched up 17,034 lots.
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In New York the New York Mercantile Exchange was closed on Monday.
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