BULLION – Bullion counter may trade on sideways path as some profit booking can be seen at higher levels. Gold prices held steady, as China industrial output grew 6.3% in June from a year earlier, official data showed on Monday, picking up from May 17-year low and handily beating market expectations. Retail sales for June rose 9.8% in annual terms. Analysts had expected growth to cool to 8.3% from May 8.6%. Hedge funds and money managers cut their bullish stance in COMEX gold in the week to July 9, the U.S. Commodity Futures Trading Commission (CFTC) said in a report on Friday. Physical gold buying stalled in top Asian hubs last week as consumers sold back bullion to cash in on a steep price rally, while a recent import duty hike further dented waning interest in an Indian market hit by a surge in local rates.
ENERGY- Crude oil may trade on weaker path as oil prices slipped on Monday after China posted its slowest quarterly economic growth in at least 27 years, reinforcing concerns about demand in the world’s largest crude oil importer. Refineries in the path of Tropical Storm Barry continued to operate despite flood threats while the storm has slashed U.S. Gulf of Mexico crude output by 73%, or 1.38 million barrels per day. An unwinding of the risk premium from tropical storm Barry, lower oil demand forecasts and a lack of news from the Middle East may have led to a muted oil price reaction. China’s economic growth slowed to 6.2% in the second quarter from a year earlier, in line with analysts’ expectations, with demand at home and abroad faltering as the Sino-U.S. trade war bites. In the Middle East, Iranian President Hassan Rouhani said in a televised speech on Sunday that Iran is ready to hold talks with the United States if Washington lifts sanctions and returns to the 2015 nuclear deal it quit last year. China June crude oil throughput rose 7.7% year on year to 53.7 million tonnes, the National Bureau of Statistics said on Monday.
BASE METAL – Base metals may trade with sideways path. Three-month copper on the London Metal Exchange edged up 0.1% to $5,939 a tonne, while the most-traded copper contract on the Shanghai Futures Exchange eased 0.1% to 46,620 yuan a tonne. China June unwrought copper imports fell 27.2% from a year earlier to 326,000 tonnes, while copper concentrate imports in June dropped to a six-month low at 1.47 million tonnes, official data showed. Chinese steel futures dropped to their lowest in three weeks on Monday, staying under pressure due to uncertain prospects for demand amid a gloomy outlook for the world second-largest economy, and weak production margins. Shanghai nickel prices on Monday surged to their highest in more than 10 months, tracking an overnight rally in London, on concerns that top producer Indonesia will resume an export ban on ore in 2022. Indonesia, which has large nickel laterite ore reserves used to make nickel pig iron for the stainless steel industry, relaxed a ban to export nickel ore in 2017, but said at the time exports of unprocessed ore will be restricted again in 2022.
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