MCX COMMODITY MORNING NEWS UPDATES
BULLION – Bullion counter may remain on sideways to negative path. Gold prices dipped on Monday on a stronger U.S. dollar and a recovery in equities markets, as hopes of stimulus from major central banks eased fears of a steep global economic downturn. On Saturday, China’s central bank unveiled a key interest rate reform to help drive borrowing costs lower for companies, and support a slowing economy. Investors are awaiting the Federal Reserve’s Jackson Hole symposium this week. Traders see about a 69% percent chance of a 25 basis-point cut in September. Hedge funds and money managers trimmed their bullish stance in COMEX gold and cut net long positions in silver contracts in the week to Aug. 13, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.10% to 843.41 tonnes on Friday.
ENERGY- Crude oil may trade with upside path as crude oil prices rose on Monday following a weekend attack on a Saudi oil facility by Yemeni separatists, although price gains were capped by an unusually downbeat OPEC report that stoked concerns about demand growth. Prices rose after the drone attack by Yemen Houthi group on an oilfield in eastern Saudi Arabia on Saturday added to Middle East tensions. The attack caused a fire at a gas plant, but state-run Saudi Aramco said oil production was not affected. In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for global oil demand growth in 2019 by 40,000 barrels per day (bpd) to 1.10 million bpd and indicated the market will be in slight surplus in 2020. Also weighing on prices, U.S. energy firms this week increased the number of oil rigs operating for the first time in seven weeks despite plans by most producers to cut spending on new drilling this year.
BASE METAL – Base metals may trade on positive path on hopes of more stimulus from central banks around the world and steps being taken by major economies such as Germany and China soothed investors fears of a sharp global economic slump. Copper prices rose on Monday after China, the world top consumer of the red metal, announced new measures to support its economy amid a damaging trade war with the United States. China central bank over the weekend unveiled a key interest rate reform in a bid to help steer borrowing costs lower for companies. However, the metal rise was capped by weak data that showed the Chinese economy continues to be hurt by an ongoing trade war with the United States, while a trade deal is not yet in sight. The Philippines top exporter of high-grade nickel ore is expected to shut its mining operations soon as ore deposits at a project in the nation southernmost province of Tawi-Tawi are nearly depleted.
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