MORNING DAILY MCX UPDATE
BULLION – Bullion counter may witness some short covering at lower levels as gold prices inched up on Wednesday, after slipping more than 1% in the previous session, as investors awaited further clarity on the U.S.-China trade talks. Washington and Beijing are working to narrow their differences enough to sign a phase one trade deal as early as this month, but suggestions for a signing venue range from Alaska to Greece. The dollar held the upper hand against a basket of major currencies on Wednesday, on rising hopes for a trade deal and a string of solid U.S. economic data. Minneapolis Federal Reserve Bank President Neel Kashkari on Tuesday said he believes U.S. monetary policy is now modestly accommodative, a view that puts him on the same page as most of his colleagues at the U.S. central bank.
ENERGY- Crude oil may witness profit booking as higher levels. Oil prices dropped on Wednesday after industry data showed a largerthan-expected build-up in U.S. crude stockpiles, but expectations for an easing of trade tensions between the United State and China capped losses. U.S. crude inventories rose by 4.3 million barrels in the week ended Nov. 1 to 440.5 million barrels, according to data from the American Petroleum Institute (API) released on Tuesday. That was nearly triple analysts forecast for an increase of 1.5 million barrels. Official data from the Energy Information Administration (EIA) is due later on Wednesday. However, hopes for a breakthrough on trade in talks between the United States and China, the world two biggest oil consumers, remained and kept price falls in check. But in the next five years, OPEC would supply a diminishing amount of oil, squeezed by rising U.S. shale output and other rival sources, according to the oil producer group 2019 World Oil Outlook, released on Tuesday.
BASE METAL – Base metals may trade with positive bias. Copper climbed to a seven-week high on Tuesday as hopes of a U.S.-China trade deal prompted bearish investors to buy back positions. Three-month copper on the London Metal Exchange (LME) climbed 1.1% to $5,940 a tonne in final open-outcry trading to register its third straight daily gain. It had earlier touched $5,978, its highest since Sept. 16. Antofagasta production cuts in Chile have doubled to about10, 000 tonnes, it said, citing worker protests in the South American nation. LME cash zinc premium over the three-month contract rose to $62 a tonne. That is the highest since July 1, having been in backwardation of $40 at the end of October. The high premium indicates near-term shortages of metal in the LME system. China top nickel producer Jinchuan Group will feel some impact from Indonesia ban on ore exports from 2020 but will be able to plug the supply gap, partly by using its own mines, a company executive said on Tuesday.