MCX MORNING UPDATE
Bullion counter may trade with sideways bias as nonfarm payroll data to give further direction the prices. Gold was flat on Friday, due to rise in risk sentiment after U.S. President Donald Trump’s latest comments rekindled hopes of a trade deal with China, but dollar’s weakness kept the bullion on track for a weekly rise. U.S. President Donald Trump said on Thursday trade talks were “moving right along”, while Beijing reiterated their stance on withdrawal of the Dec. 15 tariffs as part of an interim deal to deescalate their 17-month trade war. Initial jobless claims dropped to 203,000 for the week ended Nov. 30, the lowest since mid-April. Pro-democracy protesters were given permission to conduct a rally by the Hong Kong authorities this weekend, following their sweeping victory in local elections.
Crude oil may remain on firm note. Oil edged up in early Asia trade on Friday, with U.S. crude trading near a two-month high after OPEC agreed to increase output curbs by nearly 50 percent in early 2020, although the cartel stopped short of promising any further steps after March. The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia – a grouping known as OPEC+ – have agreed to more output cuts to avert oversupply early next year as economic growth stagnates amid the U.S.-China trade war. The agreement, which needs to be formally adopted later on Friday, will reduce 500,000 barrels per day (bpd) of production, through tighter compliance and some adjustments. The group has been withholding 1.2 million bpd and the new amount represents about 1.7% of global oil output. A panel of ministers representing OPEC and non-OPEC producers led by Russia recommended the cuts be made, according to Russian Energy Minister Alexander Novak on Thursday. Details need to be hammered out at an OPEC+ meeting that starts later on Friday in Vienna.
BASE METAL –
Base metals may trade with sideways to weak bias. Copper prices edged up on Friday, set for a third straight weekly gain, following U.S. President Donald Trump upbeat rhetoric on trade talks with China, although concerns about demand for the metal kept gains in check. The trade talks were moving right along, Trump said on Thursday, even as Chinese officials insisted that both sides must simultaneously cancel some existing tariffs on each other goods for them to reach a phase one trade deal. The nickel price bubble is slowly deflating but bears would be advised to tread carefully with a sharp fall in LME inventory threatening a repeat of the time-spread turbulence that rocked the London market in late September.
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