MCX MORNING UPDATE
BULLION – Bullion counter may witness some short covering at lower levels after yesterday sharp fall. Gold fell on Thursday, losing some of its safe-haven appeal as signs of progress in the U.S.-China trade negotiations rekindled a rally in stock markets. China and the United States have agreed to cancel, in phases, the tariffs imposed during their months-long trade war, the Chinese commerce ministry said, without specifying a timetable. The euro zone economy is likely to grow slower than earlier expected this year and next, the European Commission forecast on Thursday, because of global trade conflicts, geopolitical tensions and Brexit. Last month, the U.S. Federal Reserve cut interest rates for the third time this year to help sustain American growth, but signalled there would be no further reductions unless the economy took a turn for the worse.
ENERGY- Crude oil may witness profit booking as higher levels as U.S. crude oil futures fell on Friday amid fading hopes that a deal to end the lingering trade war between Washington and Beijing would be signed any time soon, the gloom compounded by rising crude inventories in the United States. The trade war between the world two biggest economies has slowed economic growth around the world and prompted analysts to lower forecasts for oil demand, raising concerns that a supply glut could develop in 2020. On Thursday, the Chinese commerce ministry said the two countries have agreed in the past two weeks to cancel trade tariffs in different phases, without giving a timeline. U.S. crude oil stockpiles rose sharply last week as refineries cut output and exports dropped, while refined products extended a multi-week drawdown, the Energy Information Administration said on Wednesday.
BASE METAL – Base metals may trade with mixed bias. China’s imports and exports fell more than expected with exports falling 3.2% in September from a year ago, while imports dropped 8.5% during the same period. Lead may trade sideways to upside bias as it can test 158 while taking support near 155. Indonesia has allowed some nickel ore exporters to resume shipments following a temporary halt to investigate reports of violations, the minister who oversees the mining sector said on Thursday. Indonesia, the world largest nickel ore exporter, temporarily stopped ore shipments on Oct. 28 following reports that monthly exports had surged nearly three-fold after the government announced it was bringing forward an export ban by two years to January 2020.
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