BULLION – Bullion counter may witness positive momentum as gold prices rose on Friday, heading for a sixth weekly gain in a row, as investors await a meeting between U.S. President Donald Trump and Chinese President Xi Jinping this weekend for any developments on trade. Trump has agreed to no preconditions for his high-stakes meeting with Xi this weekend and is maintaining his threat to impose new tariffs on Chinese goods, White House economic adviser Larry Kudlow said. On Thursday, The South China Morning Post, reported that Washington and Beijing were laying out an agreement that would help avert the next round of tariffs on an additional $300 billion of Chinese imports. U.S. Treasury yields fell on Thursday on concerns that trade discussions between the United States and China on Saturday may be more complicated than previously expected. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.26% to 795.80 tonnes on Thursday from 797.85 tonnes on Wednesday.
ENERGY- Crude oil may trade on sideways path oil prices were steady on Friday, with focus shifting to the G20 summit where a scheduled meeting between U.S. President Donald Trump and Chinese President Xi Jinping has stirred hopes that trade tensions could ease. The leaders of the G20 countries meet on Friday and Saturday in Osaka, Japan, but the most anticipated meeting is between Trump and Xi on Saturday. A trade dispute between the world two biggest economies has weighed on oil prices, fanning fears that slowing economic growth could dent demand for the commodity. Trump said on Wednesday a trade deal with Chinese President Xi was possible this weekend but he is prepared to impose U.S. tariffs on most remaining Chinese imports should the two countries disagree. The Organization of Petroleum Exporting Countries (OPEC) and some non-members including Russia, known as OPEC+, will hold meetings on July 1-2 in Vienna to decide whether to extend their supply cuts. OPEC+ agreed to curb their oil output by 1.2 million barrels per day from Jan.1. U.S. natural gas futures on Thursday rose by more than 2% to their highest in a week on forecasts for warmer weather and a federal report showing a slightly smaller-than-expected weekly storage build.
BASE METAL – Base metals may trade with sideways to weak bias. China central bank said on Thursday it will maintain support for the slowing economy as global risks rise, while vowing not to adopt flood-like stimulus that analysts say could exacerbate debt and structural risks. Copper prices rose slightly on Friday, following news that dozens of artisanal miners were killed when part of a copper and cobalt mine owned by Glencore collapsed in Congo. Meanwhile, a two-week strike that docked output at Chile Chuquicamata copper mine has ended after three main labour unions voted on Thursday to accept the latest contract offer from Codelco, the world largest copper producer. Chuquicamata, or “Chuqui,” one of Codelco’s key copper deposits, faces a challenge to maintain output as the open-pit mine undergoes a complex $5 billion-plus transformation into an underground shaft mine.
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