MCX MORNING UPDATE
BULLION – Bullion counter may trade on weaker path as gold prices edged lower on Friday as U.S. President Donald Trump remarks on progress in Sino-U.S. trade talks lifted risk appetite, while palladium was set to end a three-day winning streak after touching a record high in the previous session. Top U.S. and Chinese negotiators wrapped up a first day of trade talks in more than two months on Thursday as business groups expressed optimism the two sides might be able to ease a 15-month trade war and delay a U.S. tariff hike scheduled for next week. Irish Prime Minister Leo Varadkar said on Thursday a Brexit deal could be clinched by the end of October to allow the United Kingdom to leave the European Union in an orderly fashion, after what he called a very positive meeting with Boris Johnson.
ENERGY – Crude oil may open on firm bias as oil prices rose early on Friday, building on gains in the previous session, after producer club OPEC hinted at making deeper cuts in supply while optimism was revived over talks between the United States and China to end their trade war. On Thursday Mohammad Barminco, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), said all options were on the table, including a deeper supply cut to balance oil markets. Beyond OPEC, trade talks between the United States and China also remained on market radar as the world top two economies seek to resolve a more-than-a-year-long trade row that has slowed global economic growth and curbed fuel consumption.
BASE METAL – Base metals may trade with positive bias. The trade dispute between the world two biggest economies has weighed on global economic growth and dimmed the demand outlook for industrial metals. A sign of progress in resolving the dispute often supports base metal prices. Shanghai copper prices rose on Friday after U.S. President Donald Trump said he would meet with China top trade negotiator, but London prices treaded water as investors remained cautious ahead of the final day of trade talks. Vedanta Resources said on Thursday it would shut its Scorpion zinc operations in Namibia from early November until the end of February 2020 due to technical problems.