MCX MORNING UPDATE
BULLION – Bullion counter may trade on sideways bias but profit booking at higher levels can be seen later today. Gold prices advanced on Monday as markets braced for US-China trade negotiations during the week with lesser hopes of a breakthrough, following a report that Chinese officials may not be as willing to bend. The US dollar against a basket of currencies was a shade lower in early trade. Asian markets too edged lower ahead of the trade talks. The next round of US-China trade negotiations, likely to be in Washington on Oct. 10-11, will be in focus to see if the two sides can end their year-long trade spat that has upset economic growth around the world and raised concerns of a possible recession..
ENERGY- Crude oil may witness some short covering at lower levels. Oil prices fell on Monday, extending last week heavy losses, with traders fearing the global economic slowdown will weigh on future oil demand growth while pegging hopes for a rebound on progress in talks this week on ending the U.S.-China trade war. U.S. and Chinese officials will meet in Washington on Oct. 10-11 in the next, much-anticipated fresh effort to work out a deal. On the supply side, a faster-than-expected resumption in Saudi Arabia production after a Sept. In Iraq, the second-largest producer among the Organization of the Petroleum Exporting Countries, deadly anti-government unrest is posing the biggest security and political challenge so far to Prime Minister Adel Abdul Mahdi year-old government.
BASE METAL – Base metals may trade with sideways bias. Investors focus now shifts to U.S.-China trade talks scheduled to resume on Oct. 10- 11, with President Donald Trump saying that his administration had a very good chance of making a trade deal with China. The world biggest copper miner, Codelco, has agreed its 2020 physical copper premium to European buyers at $98 a tonne, the same level as for 2019. LME lead rose as much as 0.6% to $2,173.50 a tonne, it highest since Feb. 28, with the cash-overthree-month spread flipping to a premium of $2.5 a tonne after staying in the discount zone for more than three weeks. LME cash nickel has been at premiums over the three-month nickel for more than seven weeks and was at a $150 premium last week, latest data showed, indicating tight nearby supplies.