MCX MORNING UPDATE
BULLION – Bullion counter may trade on sideways bias but profit booking at higher levels can be seen later today. Gold prices surged after a two-day fall, tracking a similar global trend. Gold traders will also focus on top-level US-China trade talks, scheduled to start later this week. In global markets, gold prices moved higher after touching a near one-week low, as the dollar eased. Gold also drew support from the dollar, with the dollar index shedding overnight gains against rivals. Silver gained 0.4% to $17.51 an ounce. Reflecting strong investment demand for gold, holdings of the world’s largest gold-backed ETF, SPDR Gold Shares, held close to their highest in nearly three years at about 923.76 tonnes.
ENERGY- Crude oil may witness some short covering at lower levels. Oil prices slipped for a third consecutive session on Wednesday as the prospect of the United States and China striking a trade deal in talks this week dimmed, raising uncertainties for global economic growth and oil demand. U.S. industry data showing a bigger-than-expected rise in stockpiles at the world top oil producer also depressed prices. Negotiators from the world top two economies will meet in Washington on Thursday and Friday in the latest effort to hammer out a deal aimed at ending a long-running trade dispute that has slowed global economic growth. .
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. Washington blacklisted Chinese companies over Beijing treatment of predominantly Muslim ethnic minorities while President Donald Trump said a quick trade deal was unlikely. August production by copper miner Codelco rose 9.3 per cent year-on-year to 154,700 tonnes, while output fell 8.5 per cent year-on-year to 770,800 tonnes at BHP’s Escondida mine. Output rose 0.5 per cent year-on-year to 352,500 tonnes at Anglo American’s and Glencore’s Collahuasi in the same month, state copper commission Cotillo said on Monday.