MCX MORNING UPDATE
Bullion counter may witness profit booking at higher levels after the recent rise. Gold prices inched lower on Tuesday, a day after hitting their highest in nearly seven years, with a lack of immediate escalation between the United States and Iran denting bullion’s safe-haven appeal. Providing limited support to gold, Defense Secretary Mark Esper said on Monday the United States has no plans to pull its troops out of Iraq, following reports of an American military letter informing Iraq officials about the repositioning of troops in preparation to leave the country. U.S. Vice President Mike Pence will give a speech next Monday laying out the government’s policy on Iran, a White House official said, after the U.S. killing of top Iranian general sparked protests across the Middle Eastern nation. The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust GLD, said its holdings rose 0.10% to 896.18 tonnes on Monday from 895.30 tonnes on Friday.
Crude oil may witness profit booking at higher levels. Oil prices edged lower on Tuesday, coming off their highest levels in months as the market calmed while the world braces for Iran’s response to the killing of its top military commander by the United States. Prices surged for the previous two sessions on fears of escalating conflict and supply disruption in the Middle East after the Jan. 3 drone strike in Baghdad that killed Iran’s Qassem Soleimani. But some analysts have tempered expectations for a widespread conflict. Meanwhile prices are also likely to gain support from higher compliance among the Organization of the Petroleum Exporting Countries (OPEC) on meeting production quota curbs aimed at reducing supply. Meteorologists projected temperatures in the U.S. Lower 48 states will fall from mostly warmer-than-normal levels now to colder-than-usual for a few days starting around Jan. 16 before rising again on Jan. 19.
BASE METAL –
Base metals may trade with upside bias. London copper prices edged upwards for a second session in early Asian trade on Tuesday, tracking gains in equity markets and as inventories of the metal continued to fall. Copper stocks in London Metal Exchange-monitored warehouses have slumped by 57.5% since late August and are currently at 142,900 tonnes, the lowest since March 2019. China Minmetals Corp said on Monday its net profit rose by 28.9% in 2019 and annual revenue increased by 13.4%, exceeding 600 billion yuan ($86.04 billion) for the first time, although its nickel and zinc resources fell.
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