BULLION – Bullion counter may trade with sideways to upside bias. Gold prices fell on early Thursday, with an uptick in equities propped up by positive developments around Brexit deadlock and Hong Kong protests, but prices hovered near over six-year high hit in the last session on persistent concerns about slowing global growth. The dollar index, which measures the greenback against a basket of currencies, dipped to a one-week low, while Asian stocks perked up on progress in the political crises in Britain and Hong Kong. The U.S. economy grew at a modest pace in recent weeks, with manufacturing buffeted by a global slowdown while consumer purchases gave mixed signals on the strength of household spending, the Federal Reserve reported on Wednesday. Christine Lagarde took a major step towards becoming the European Central Banks next president on Wednesday, securing the backing of a European Parliament committee after pledging to keep policy loose while undertaking a broader strategy review. Indias gold imports plunged 73% in August from a year ago to the lowest level in three years as a rally in local prices to a record high and a hike in import duty discouraged retail buying, a government source said on Wednesday.
ENERGY – Crude oil may witness some profit booking after yesterday gains. Oil prices fell on Thursday, giving up some of the strong gains of the previous session, after an industry report showed U.S. crude stockpiles rose last week, against analyst expectations of a decline. U.S. crude stocks rose last week, while gasoline inventories decreased and distillate stocks drew, data from industry group the American Petroleum Institute (API) showed on Wednesday. 1 million, compared with analysts expectations for a decrease of 2.5 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 238,000 barrels, while refinery crude runs fell by 306,000 barrels per day, API said. Oil prices surged on Wednesday after a survey showed that activity in Chinas services sector expanded at the fastest pace in three months in August as new orders rose. U.S. President Donald Trump also warned on Tuesday he would be tougher on Beijing if he wins a second term should trade talks drag on, adding to fears of a possible U.S. recession. U.S. natural gas futures rose almost 4% to a fresh seven-week high on Wednesday on forecasts for the weather to remain warmer than normal in Texas and the Southeast through mid September despite projections for slightly lower cooling demand next week than previously expected
BASE METAL –Base metals may trade with upside path. China said it will implement both broad and targeted cuts in the reserve requirement ratio for banks “in a timely manner,” an indication that a cut in the key ratio aimed at boosting lending could be imminent. Shanghai copper rallied to over a one-month high, while London copper jumped to its highest in more than two weeks on Thursday after China and the United States agreed to hold trade talks next month. Chinese and U.S. officials are scheduled to meet in early October in Washington to discuss trade issues, China’s commerce ministry said, adding that both sides agreed to take actual actions to create favourable conditions. LME onwarrant copper inventories, or those available for delivery, fell to a two-month low of 209,650 tonnes.
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