MCX DAILY UPDATE
BULLION – Bullion counter may witness profit booking at higher levels as gold prices edged down on Tuesday, extending losses to a second straight session, as hopes of a U.S.-China trade pact bolstered the dollar and increased appetite for riskier assets, weighing on the safe-haven bullion. The U.S. Federal Reserve has cut interest rates three times this year, but recent economic data suggests that the world largest economy outlook is not as bad as some had feared. However, data on Monday showed new orders for U.S.-made goods fell more than expected in September and business spending on equipment was slightly weaker than initially thought, suggesting that manufacturing remains soft amid the U.S.-China trade war. After the Labor Department data last week showed that U.S. job growth slowed less than expected in October, investors now await U.S. ISM non-manufacturing report due later in the day, which is forecast to show activity accelerated slightly in October.
ENERGY- Crude oil may witness profit booking as oil prices slipped on Tuesday amid doubts over whether OPEC and other countries will continue to restrain output, edging lower after two days of gains on U.S. economic data and hopes for a Washington-Beijing trade deal. Markets have been eyeing a possible extension, or even a deepening, early next year of OPEC current production curbs, which have been supporting oil prices. Russia lowered its oil output to 11.23 million barrels per day (bpd) last month from 11.25 million bpd in September, but again missed its obligations under a pact to curb production. The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers – a group known as OPEC+ – have since January implemented a deal to cut oil output by 1.2 million barrels per day. Oil investors are also closely watching the initial public offering of Saudi Arabia state oil company, Saudi Aramco, in what is expected to be the world biggest listing as the kingdom seeks to cash in on peaking demand for oil.
BASE METAL – Base metals may trade with positive bias. China is pushing U.S. President Donald Trump to remove more tariffs imposed in Septembers as part of a phase one U.S.-China trade deal, people familiar with the negotiations said on Monday. Copper prices rose on Tuesday, after copper producer Antofagasta Plc cut its output forecast from Chile due to nationwide protests in the world biggest copper producer. Antofagasta on Monday doubled its output cut from Chile to about 10,000 tonnes, pointing to a bigger hit from the protests in the South American nation, which has seen weeks of demonstrations against inequality.
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