BULLION – Bullion counter may trade on sideways path as some profit booking can be seen at higher levels. Gold prices rose on Friday and were on track for a weekly gain, as worries over renewed U.S.-China trade tensions and expectations of a rate cut by the Federal Reserve boosted demand for the safe-haven metal. Fed Chair Jerome Powell indicated on Thursday that a rate cut is likely at the Fed next meeting as businesses slow investment due to trade disputes and a global growth slowdown. U.S. President Donald Trump said on Thursday that China was not living up to promises it made on buying agricultural products from American farmers. Meanwhile, the dollar index steadied on Friday after falling to near one-week low in the previous session, regaining some traction against its peers on stronger U.S. inflation data. The signs of a pick-up in underlying inflation, along with separate data on weekly jobless claims showing the labour market remained solid, curbed financial market expectations of a more aggressive 50 basis point cut at the Fed July 30-31 meeting.
ENERGY- Crude oil may trade on upside path as oil prices rose on Friday as U.S. oil producers in the Gulf of Mexico cut more than half their output in the face of a tropical storm and as tensions continued in the Middle East. By Thursday, oil companies in the Gulf of Mexico had cut more than 1 million barrels per day (bpd) of output, or 53% of the region production, due to Tropical Storm Barry. The storm was forecast to become a category one hurricane with at least 74-mile-per hour (119 km-per-hour) winds. Brent crude oil … extended its gains as storms in the Gulf of Mexico halted production of oil and U.S. oil inventories continued to recede more than expected. Meanwhile, Iran alleged attempt to block a British-owned tanker heightened tensions in the Middle East in the wake of attacks on tankers and the downing of U.S. drone by Iran in June. But a lower 2020 oil demand outlook from the Organization of the Petroleum Exporting Countries kept price gains in check. OPEC said the world would need 29.27 million bpd of crude from its 14 members in 2020, down 1.34 million bpd this year. U.S. natural gas futures fell on Thursday, a day after hitting a five-week high, as midday forecasts called for less hot weather over the next two weeks than previously expected.
BASE METAL – Base metals may trade with sideways path. Industrial metals traded in tight ranges on Friday, as investors exercised caution ahead of a key set of data from top metal player China later in the session. China is due to release its trade data for the month of June later on Friday, including imports and exports figures of key metals. China is the world biggest copper consumer and a key user or producer of the majority of the main base metals. U.S. President Donald Trump said on Thursday that China was not living up to promises it made on buying agricultural products from American farmers as the world two largest economies work to resolve a trade dispute.
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