MCX MORNING UPDATES
BULLION – Bullion counter may trade with upside bias as gold prices jumped more than 1% on Monday as investors scurried for safe-haven assets after weekend attacks on Saudi Arabia oil facilities risked disrupting global energy supplies and increasing tensions in the Middle East. U.S. President Donald Trump said on Sunday the United States was locked and loaded for a potential response to the attack on Saudi Arabia oil facilities, after a senior official in his administration said Iran was to blame. The U.S. Federal Open Market Committee meets on Tuesday and Wednesday, with a press conference by Chair Jerome Powell scheduled to follow the release of the central bank statement. Hedge funds and money managers reduced their bullish positions in COMEX gold and silver contracts in the week to Sept. 10, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. SPDR Gold Trust, the world largest gold-backed exchange-traded fund, said its holdings fell 0.67% to 874.51 tonnes on Friday.
ENERGY- Crude oil may remain on upside path as oil prices surged to six-month highs on Monday while Wall Street futures fell and safe haven bets returned after weekend attacks on Saudi Arabia crude facilities knocked out more than 5% of global oil supply. Yemen Iran-backed Houthi rebel group had claimed responsibility for the attack, which hit the world biggest oil-processing facility but a senior U.S. official told reporters on Sunday that evidence indicated Tehran was behind it. The attacks heightened investor worries about the geopolitical situation in the region and worsening relations between Iran and the United States. U.S. crude futures were last up 11% at $61.10 a barrel, coming off highs on expectations other global oil suppliers would step in to lift output. Brent crude soared 13% at $68.06 after earlier rising to $71.95.
BASE METAL – Base metals may trade with weak bias as China’s industrial production growth skidded to its weakest pace in 17Â½ years in August, expanding just 4.4 per cent year-on-year, signaling further weakness in an economy hit by the trade war and slowing demand. Fixed-asset investment for the first eight months of the year rose 5.5 per cent, according to data published by the National Bureau of Statistics. London copper prices dropped on Monday, while some other base metals also declined, dragged by concerns about slowing demand outlook from top consumer China. Prices of the metal will remain depressed through next year due to the continuing uncertainty caused by global trade tensions. A sharp fall in Japanese physical premiums for fourth-quarter shipments is the latest sign that aluminum is not immune from the demand weakness that is sapping the industrial metals complex.
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