Bullion counter may trade on sideways bias. Gold prices eased on Monday, extending falls into a third session, as news that the United States and China had made progress in their recent high-level trade talks lifted risk appetite. U.S. President Donald Trump on Friday outlined the first phase of a deal and suspended a threatened tariff hike, but officials on both sides said much more work needed to be done before an accord could be agreed. The coming days will be crucial for Britain, as it prepares for its departure from the European Union on Oct. 31, with both parties claiming a lot more work would be needed to secure an agreement. M Markets also look for signs the U.S. Federal Reserve will cut interest rates at its next meeting later in the month.
Crude oil may trade with sideways bias as oil prices were little changed on Monday, holding onto 2% gains from Friday amid renewed geopolitical tensions in the Middle East, while a detente in the U.S.-China trade war buoyed market sentiment. Most of the gains were posted on Friday after an Iranian oil tanker was attacked off Saudi Arabia coast in the Red Sea. The emergence of a phase 1 trade deal between the United States and China and a goodwill move by Washington to suspend threatened tariffs on Chinese products also lifted global financial markets.
Base metals may trade with positive bias. Shanghai copper prices edged up on Monday amid signs of progress in the U.S.-China trade talks, but gains were limited as the markets remained cautious about the prospects of a durable deal. U.S. President Donald Trump on Friday outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike on Oct. 15, but existing tariffs remain in place and officials on both sides said much more work is needed before an accord could be agreed. The protracted trade dispute between the United States and China has slowed global growth and weakened demand for industrial metals.