BULLION – Bullion counter may trade on weaker path as gold prices fell on Tuesday as the dollar held near multi-week highs after investors reduced bets on an aggressive U.S. interest rate cut this month. The dollar index was hovering near a three-week high on Tuesday after investors rolled back expectations for a sharp U.S. rate cut at the end of July. Money market futures are still fully pricing in a 25 basis point cut at the Federal Reserves next policy meeting on July 30-31, but have almost priced out a larger 50 basis point reduction. Fed chief Jerome Powells comments in two-day testimony to Congress beginning on Wednesday will be closely watched to determine whether traders will continue to pare bets for deep interest rate cuts. SPDR Gold Trust, the worlds largest gold-backed exchange-traded fund, said its holdings fell 0.15% to 795.80 tonnes on Monday from 796.97 tonnes on Friday.
ENERGY– Crude oil may trade on subdued path as oil fell on Tuesday amid worries over the outlook for demand after the latest signs that international trade disputes have been dragging on the global economy, although tensions in the Middle East offered some support to prices. Oil fell on Tuesday amid worries over the outlook for demand after the latest signs that international trade disputes have been dragging on the global economy, although tensions in the Middle East offered some support to prices. Oil prices are being pressured by ongoing worries about demand as the U.S.-China trade war, heading into its second year, dampens prospects for global economic growth. Japans core machinery orders fell by the most in eight months, data showed on Monday, in a sign the global trade tensions are taking a toll on corporate investment. U.S. natural gas futures eased on Monday from a five-week high in the previous session with production near record highs and forecasts for lower demand over the next two weeks than previously expected.
BASE METAL – Base metals may trade with sideways path.. Copper prices on the London Metal Exchange fell on Tuesday, on track for a third straight decline, amid a lack of news on steps to settle a prolonged trade dispute between the United States and China. Representatives from the two countries were expected to resume talks this week, but nothing has been released about whether the talks happened or whether progress has been made in resolving the year-long dispute that has hurt demand for metals. China will investigate state-owned metals conglomerate China Minmetals Corp Ltd and chemical producer China National Chemical Corp Ltd in a new round of central government environmental audits, the environment ministry said.
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