MCX MORNING UPDATE
Bullion counter can witness sideways movement as gold prices edged higher on Friday as fears over a rapidly spreading coronavirus outbreak and its economic impact fuelled safe-haven buying. However, China’s move to cut tariffs on some U.S. imports that sent global stock markets higher in the previous session weighed on bullion prices. Gold (Apr) can take support near 40250 while facing resistance near 40600 while silver (Mar) may take support near 46000 while taking resistance near 46600. The death toll from the coronavirus outbreak in mainland China reached 636 by the end of Thursday, up 73 from the previous day, the National Health Commission said. Beijing said it would lower extra levies imposed last year on 1,717 U.S. products, weeks after the signing of a Phase 1 trade deal that brought a truce to a bruising tariff dispute between the world’s two largest economies. U.S. weekly jobless claims hit a nine-month low as the number of Americans filing for unemployment benefits dropped to 202,000 last week, while productivity rebounded in the fourth quarter. U.S. Federal Reserve Vice Chair Randal Quarles said policymakers should consider changes that would make it easier for banks to treat Treasury holdings as similar to reserves held with the central bank when meeting liquidity requirements.
Crude oil may remain on sideways to upside path as oil prices rose on Friday after Russia said it backs a recommendation for the OPEC and its producer allies to deepen output cuts amid contracting demand for crude as China battles the coronavirus epidemic that has hit global markets. A panel advising the Organization of Petroleum Exporting Countries (OPEC) and allies led by Russia, known as the OPEC+ group, suggested provisionally cutting output by 600,000 barrels per day (bpd). Crude oil can test 3730 while taking support near 3600. Oil prices have fallen by more than a fifth since the outbreak of the virus in the city of Wuhan in China. Chinese President Xi Jinping
declared a “people’s war” on the epidemic as China’s Hubei province, where Wuhan is located, reported 69 new deaths, taking the total in the country to more than 600.Natural gas can dip towards 132 while taking resistance near 136. U.S. natural gas futures were little changed on Thursday as forecasts for cooler weather, higher heating demand and slowing output offset a bigger-than-expected storage draw last week and a collapse in global liquefied
natural gas (LNG) prices.
BASE METAL –
Base metals may trade with mixed bias. Copper may dip lower and can test 430 while taking resistance near 438. Copper prices retreated from highs on Thursday as cases of the coronavirus in top metals consumer China continued to climb and health officials dashed hopes of a breakthrough treatment. Benchmark copper on the London Metal Exchange had bounced by about 5% so far this week after touching a five-month low on Monday, but pulled back in European trading on Thursday.
Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.