BULLION – Bullion counter may trade on weaker path as gold prices witnessed sharp decline in the previous session, while investors awaited U.S. economic growth data due later in the day that could provide clues about the Federal Reserve’s monetary policy meeting. Gold fell on Thursday after data showed that weekly U.S. jobless claims number fell to a three-month low last week, pointing to strength in the labor market, while new orders for key U.S.-made capital goods surged 1.9 % in June. Market participants are now looking ahead to the U.S. central bank’s July 30-31 monetary policy meeting where it is expected to trim its interest rate by at least 25 basis points. U.S. Treasury yields following rosier-than-expected economic sentiment from the European Central Bank. The ECB signalled its intention to explore monetary easing, but left interest rates unchanged, and bank President Mario Draghi struck a more upbeat tone on the economy than investors expected. The ECB signalled its intention to explore monetary easing, but left interest rates unchanged, and bank President Mario Draghi struck a more upbeat tone on the economy than investors expected.
ENERGY– Crude oil may trade on weaker path as oil prices fell after a Reuters poll showed global economic growth is likely to slow further amid the U.S.-China trade war, although losses were limited by tensions in the Middle East. A global economic growth rut risks deepening, despite expectations that major central banks will cut rates or ease policy further, according to Reuters polls of over 500 economists who remain worried about the U.S.-China trade war. Increasing pessimism is clear from the latest polls taken July 1-24, which show the growth outlook for nearly 90% of over 45 economies polled was either downgraded or left unchanged. That applied not just to this year but also 2020. While concerns over Middle East supply disruptions have led to recent price spikes, oil has generally been under pressure from worries about global economic growth amid growing signs of harm from the rumbling Sino-U.S. trade war over the past year. U.S. natural gas futures gained over 1% on Thursday following the release of a report showing a smaller-than-usual storage build last week and forecasts for slightly higher demand over the next two weeks than previously expected.
BASE METAL – Base metals may trade on subdued path. Copper prices dropped on Friday, on track for their first weekly decline in three, as comments from European Central Bank President Mario Draghi were less dovish than hoped after the bank held rates steady at its latest meeting. An aggressive easing by a major central bank generally supports growth and helps lift metal prices. Peru president said his government will re-evaluate its recent decision to grant a construction permit to Southern Copper Corp for its proposed mine Tia Maria at the request of local authorities calling for its annulment. The European Central Bank (ECB) signalled its intention to explore monetary easing but left interest rates unchanged on Thursday. Lead negotiators for China and the United States will meet in Shanghai on Tuesday for two days in the next round of trade talks aimed to end their year-long trade war, China commerce ministry confirmed.
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