MCX MORNING UPDATE
BULLION – Bullion counter may trade on upside bias. Gold prices edged higher on Wednesday after shedding nearly 1% in the previous session, as it remained unclear if Britain could avoid postponing its departure from the EU beyond Oct. 31. Last-ditch talks between Britain and the European Union to get a Brexit deal ahead of a summit of the bloc leaders this week went on past midnight to Wednesday, but it was still unclear if London could avoid postponing its departure due on Oct. 31. Media reports quoting EU officials as saying negotiators were close to a Brexit deal triggered a late afternoon rally across equity markets on Tuesday.
ENERGY – Oil prices rose on Wednesday, tracking gains in equities, as investors pinned hopes on a potential Brexit deal between Britain and the European Union and on signals from OPEC and its allies that further supply curbs could be possible. Providing more support, OPEC Secretary-General Mohammad Barkindo said the Organization of the Petroleum Exporting Countries and allied producers will do whatever (is) in its power to sustain oil market stability beyond 2020. OPEC, Russia and other producers have cut oil output by 1.2 million barrels per day to support the market. Yet an expected rise in U.S. crude inventories this week kept prices under pressure. Still, concerns of a global economic slowdown due to a lingering trade war between the United States and China and swelling U.S. inventories pressured prices. U.S.
BASE METAL – Base metals may trade with negative bias. Copper prices dipped on Wednesday as Chile’s Antofagasta Minerals one of the world’s top copper producers, averted a labour strike at a copper mine after reaching an agreement with its employees. The copper producer reached a labour agreement with a union of supervisors at its flagship Los Pelambres mine in Chile, and the newly inked 36-month contract includes a 1% hike in salaries, a signing bonus of $17,000 as well as loan incentives for workers, Antofagasta said in a statement. The International Monetary Fund warned on Tuesday that the U.S.-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis.