MCX MORNING UPDATE
BULLION – Bullion counter may trade on volatile path with some profit booking can be seen at higher levels. The United States and China made no progress in deputy-level trade talks held during Monday and Tuesday in Washington, the South China Morning Post reported, with Chinese delegation planning to leave Washington on Thursday, instead of Friday, as earlier planned. Hopes of a breakthrough in trade talks had dwindled earlier this week after the U.S. government widened its trade blacklist to include some of China top artificial intelligence startups, punishing Beijing for its treatment of Muslim minorities and ratcheting up tensions. The talks were to take place ahead of a scheduled increase in U.S. Gold prices surged after a two-day fall, tracking a similar global trend.
ENERGY – Crude oil may open on weak bias as oil prices slid on Thursday as hopes faded for any significant progress in U.S.-China trade talks that could dispel clouds over the global economy and gloom over prospects for weaker oil demand. U.S. President Donald Trump expressed optimism on Wednesday, saying there was a very good chance the two sides will reach a trade agreement. But with high-level trade discussions set to start later on Thursday, the South China Morning Post reported the pair had made no progress in preliminary, lower-level talks. Adding to concerns, U.S. crude stocks rose 2.9 million barrels in the week to Oct. 4, the Energy Information Administration (EIA) said, more than double analysts expectations for an increase of 1.4 million barrels.
BASE METAL – Base metals may trade with sideways bias. Copper held steady on Wednesday before high-level talks between China and the United States but low expectations for a swift end to their prolonged trade dispute kept prices under pressure. U.S. and Chinese officials are due to talk on Thursday and Friday in a bid to end a 15-month long trade dispute. A tighter copper market can be seen in bonded copper stocks in Shanghai, which at 290,000 tonnes are down from 600,000 tonnes in March and at their lowest since late 2011.