MCX MORNING UPDATE
BULLION – Bullion counter may continue yesterday gains but profit booking CT higher levels cannot be denied. Gold prices edged down on Thursday as bullion’s safe-haven appeal was dented by hawkish signals from the U.S. Federal Reserve on further interest rate cuts, citing growth in the U.S. economy, a strong labour market and steady inflation. The Fed has cut interest rates thrice this year to help sustain U.S. growth. A lower interest rate trims the opportunity cost of holding non-yielding bullion. Adding fuel to the concern, Trump threatened to jack up tariffs on Chinese goods if the countries fail to reach a trade deal, which could raise the price of cellphones, laptops, and toys less than two weeks before Christmas. SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.04% to 896.77 tonnes on Wednesday from 897.09 tonnes the previous session.
ENERGY – Crude oil may trade with firm bias. Oil prices rose on Thursday, extending gains from the previous session, as an industry report showing a fall in U.S. crude stockpiles last week added to positive comments by the U.S. Federal Reserve head on the U.S. economy. U.S. crude inventories fell by 541,000 barrels in the week to Nov. 8 to 440 million, data from the American Petroleum Institute, an industry group, showed on Wednesday. Official data from the U.S. Energy Information Administration is due later today. The Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia – grouping known as OPEC+ – have been restraining production since January to try support oil prices. Still, OPEC Secretary General Mohammad Barkindo said global economic fundamentals remained strong and that he remained confident the United States and China would reach a trade deal.
BASE METAL – Base metals may trade with weak bias. The price of copper and other base metals slipped on Wednesday after U.S. President Donald Trump threatened more tariffs on China, disappointing investors keen for a trade deal. While Trump said in a speech that a phase one trade deal was close, the market focused on his comments about raising tariffs on Chinese goods very substantially if a deal fails to be agreed. Copper inventories in LME-approved warehouses fell to a five-month low at 224,425 tonnes, while stocks in warehouses tracked by the Shanghai Futures Exchange have declined 44% since March to 148,687 tonnes. China aluminium consumption is seen falling for the first time in 30 years this year as domestic demand and exports decline, research house Antaike said.
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.