MCX MORNING UPDATE
BULLION – Bullion counter may witness some selling pressure at higher levels. Gold prices fell on Friday as investors’ risk appetite was whetted by comments from White House economic adviser Larry Kudlow that the United States is nearing an interim trade pact with China. The United States is getting close to a trade agreement with China, White House economic adviser Larry Kudlow said on Thursday, citing what he called very constructive discussions with Beijing. Gold prices have gained more than 14% this year on uncertainties over the months-long China-U.S. trade war, which has roiled financial markets and prompted fears of a global economic slowdown. Global sentiment has been hit in recent weeks by conflicting assessments of progress in talks aimed at ending the two countries’ trade spat.
ENERGY- Crude oil may trade with sideways to upside path. Oil prices posted early gains as OPEC’s outlook for oil demand next yearfuelled hopes that the producer group and its associates will keep a lid on supply when they meet to discuss policy on output next month. Optimism that the United States and China could soon sign an agreement to end their trade war also seeped into the market after White House economic adviser Larry Kudlow said a dealm was “getting close”, citing what he called very constructive discussions with Beijing. Organization of the Petroleum Exporting Countries (OPEC) said on Thursday it expected demand for its oil to fall in 2020. That supports the view among markets that there’s a clear case for the group and other producers like Russia – collectively known as ‘OPEC+’ – to maintain limits on production that were introduced to cope with a supply glut. OPEC+ on Jan. 1 cut output by 1.2 million barrels per day (bpd), and in July, the alliance renewed the pact until March 2020. Crude production rose by 200,000 bpd to a weekly record of 12.8 million bpd, the EIA said in its weekly report.
BASE METAL – Base metals may trade with sideways bias. Base metals prices in Londonbroadly rose on Friday as signs of progress in the U.S. – China trade talks raised hopes for an interim deal that could help demand for industrial metals. China and the United States are holding “in-depth” discussions on a first phase trade agreement, and cancelling tariffs is an important condition to reaching a deal, the Chinese commerce ministry said on Thursday. Copper stocks on LME-approved warehouses fell to a five-month low, while inventories in warehouses tracked by the Shanghai Futures Exchange (ShFE) picked up last month but are still down 43% from a 2019 peak in March. Aluminum Corp of China Ltd, known as Chalco, is set to make its first shipment from Boffa’s bauxite mine in Guinea by early December, an official from state parent company Chinalco said on Thursday.
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