MCX MORNING UPDATE
Bullion counter can dip lower on profit booking at higher levels. Gold prices eased on Tuesday as the dollar held firm after a key U.S. manufacturing survey showed a surprise rebound, although rising concerns about a widening coronavirus outbreak in China and its economic fallout provided some support to the metal. China has agreed to allow U.S. health experts into the country as part of a World Health Organization effort to help fight the fast-spreading coronavirus, as the number of cases and deaths continued to mount. The death toll from the coronavirus outbreak in China rose to 425 as of the end of Monday, up by 64 from the previous day, the country’s National Health Commission said. Gold (Apr) can dip lower towards 40500 while taking resistance near 40900 while silver (Mar) can test 45800 while taking resistance near 46200. U.S. factory activity rebounded in January after contracting for five straight months amid a surge in new orders, a report from the Institute for Supply Management (ISM) showed, offering hope that a prolonged slump in business investment has probably bottomed out. The Perth Mint’s sales of gold coins and minted bars in January dived 38.8% to 48,299 ounces month-onmonth, but were up 54.9% from last year.
Crude oil may remain on sideways to weaker path .Oil prices rose on Tuesday, matching moves in other financial markets as investors regained calm after Monday’s sharp sell-off on fears of the impact of the China coronavirus on demand sent crude to its lowest level in more than a year. Crude oil can move towards 3570 while taking resistance near 3650. The rebound of crude oil prices reflects improved trading sentiment (across the Asia-Pacific region), as concerns over coronavirus outbreak alleviated somewhat. recovery was also helped by the Organization of the Petroleum Exporting Countries (OPEC) and its allies considering further supply cuts amid concerns that the will dampen the outlook for global energy demand. OPEC and allies including Russia, known as OPEC+, were considering cutting their oil output by a further 500,000 barrels per day (bpd) due to the impact on oil demand from the coronavirus. Natural gas can move lower towards 128 while taking resistance near 133. U.S. natural gas futures fell to their lowest in almost four-years on Monday on forecasts for warmer weather through mid-February than previously expected. Meteorologists projected the weather in the U.S. Lower 48 states will remain near- to warmerthan-normal through Feb. 18. That is warmer than Friday’s outlook, which called for cold from Feb. 11-15.
BASE METAL –
Base metals may trade with positive bias. Copper prices slumped by 10% in January, marking the heaviest monthly fall since 2015, in a clear warning sign that China’s battle with the coronavirus could be very bad news for metals demand. January’s slump echoed the two price collapses of 2015, when the market dropped 13% in January and more than 10% in November, both of which were occasioned by bear attacks in China most infamously by the Shanghai Chaos fund at the start of the year.
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