MCX MORNING UPDATE
BULLION – Bullion counter may trade with positive bias as today US nonfarm payroll data will further give direction to the prices. Gold prices were little changed on Friday as investors evaluated whether the Federal Reserve would continue to cut rates, but the metal was set for a second weekly gain as the uncertainty surrounding a U.S.-China trade deal boosted safe-haven appeal. The U.S. Federal Reserve on Wednesday lowered its policy rate by a quarter of a percentage point to a target range of 1.50% to 1.75% but signalled there would be no further reductions unless the economy takes a turn for the worse. But a flattening yield curve indicates market participants believe the U.S. Federal Reserve may be pausing its interest rate cuts too soon. Chile decision to cancel the Nov. 16- 17 Asia-Pacific Economic Cooperation summit disrupted plans for the United States and China to sign an interim trade deal, but U.S. President Donald Trump said the two countries would soon announce a new site to sign a Phase One trade agreement.
ENERGY- Crude oil may witness profit booking as oil prices steadied on Friday after a rough week, squeezed about 4% lower by a combination of rising global supply and uncertain future demand. Worries over global economic growth, along with oil demand, continued to haunt the market as leaders from the United States and China continue to struggle to end a 16-month dispute that has roiled trade between the world top two economies. U.S. crude inventories rose by 5.7 million barrels in the week to Oct. 25, dwarfing analyst expectations for an increase of just 494,000 barrels. Meanwhile, U.S. crude production soared nearly 600,000 barrels per day in August to a record of 12.4 million, buoyed by a 30% increase in Gulf of Mexico output, according to government data released on Thursday.
BASE METAL – Base metals may trade with positive bias. U.S. President Donald Trump said the United States and China would soon announce a new site where he and Chinese President Xi Jinping will sign a Phase One trade deal after Chile cancelled a planned summit set for mid-November. China factory activity unexpectedly expanded at the fastest pace in well over two years in October as new export orders rose and plants ramped up production, a private business survey showed. China is the world biggest consumer of copper, which is widely used in manufacturing activities. London copper prices bounced back on Friday from a sharp fall in the previous session, after a private business survey showing a betterthan-expected factory data in China boosted trading sentiment. Nickel miner Independence Group NL said it will stop work on developing a downstream nickel sulphate facility after winning improved terms in two recent off-take agreements for concentrate from its Nova mine.
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