BULLION – Bullion counter may trade on upside bias as gold steadied on Tuesday, having recouped the key $1,300-level in the previous session, after Beijing’s announcement of a retaliatory tariff-hike to counter Washington rocked risk sentiment, embellishing appetite for safe-haven assets. China said on Monday it would impose higher tariffs on most U.S. imports on a revised $60 billion target list, hitting back at a tariff hike by Washington on $200 billion of Chinese goods. U.S. President Donald Trump said he would meet Chinese President Xi Jinping next month as the trade war between the world’s two largest economies intensified, sending shivers through global markets. China raised gold holdings by 11.20 tonnes to 1,885.54 tonnes in March, the International Monetary Fund (IMF) said on Monday.
ENERGY- Crude oil may trade with sideways bias as oil prices were moving higher on Tuesday, though gains were checked amid an escalation in the trade war between the United States and China. Headlines from the Middle East grabbed attention early in the session after Saudi Arabia said two of its oil tankers were among those attacked off the coast of the United Arab Emirates, describing it as an attempt to undermine security of supply amid United States-Iran tensions. China on Monday ignored a warning from U.S. President Donald Trump and moved to impose higher tariffs on a range of U.S. goods including frozen vegetables and liquefied natural gas. The U.S. Energy Department said on Monday that it was confident global oil markets are well supplied. U.S. natural gas futures edged up to a four-week high on Monday as record liquefied natural gas (LNG) exports and higher estimated demand for next week than previously forecast offset an increase in production.
BASE METAL – Base metals prices may witness some short covering at lower levels as most industrial metals rose on bargain buying on Tuesday after prices tumbled in recent sessions due to escalated trade tensions between China and the United States. Copper inventories in warehouses approved by the London Metal Exchange fell further on Friday to its lowest since April 25 at 203,750 tonnes, latest data showed. The copper market should see a deficit of 189,000 tonnes this year, widening to 250,000 tonnes in 2020, the International Copper Study Group (ICSG) said on Monday. World refined output is likely to increase by about 2.8% and 1.2% in 2019 and 2020 respectively, while demand is expected see an increase of about 2% and 1.5%, the group said.
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