MCX MORNING UPDATE
Bullion counter may witness sideways movement on mixed fundamentals .Gold edged lower on Friday, on track to post its worst week in two months, as positive U.S. economic data and optimism over an interim U.S.-China trade deal boosted appetite for riskier assets and dented some of bullion’s allure. Gold can dip lower towards 39600 while taking resistance near 39800 while silver can test 46200 while taking resistance near 46700. Data from the United States showed retail sales rose for a third straight month in December and the number of Americans filing claims for unemployment benefits dropped for a fifth straight week last week. Investors are now awaiting Chinese economic data, where China is expected to post that economic growth slowed to its weakest in nearly three decades in 2019 amid a bruising trade war with the United States. Meanwhile, from Huawei to the South China Sea, deep political rifts between Beijing and Washington are set to persist, despite a trade relations breakthrough, as the U.S. pushes back against an increasingly powerful and assertive China. Holdings of the world’s largest gold-backed exchange traded fund SPDR Gold Trust GLD rose 0.13% to 879.49 tonnes on Thursday.
Crude oil may witness lower level buying as oil prices were steady on Friday as investors braced for data expected to show China’s economic growth last year slid to its slowest pace in 29 years, holding on to gains for now after Washington and Beijing inked a long-awaited trade deal. Crude oil can recover towards 4180 while taking support near 4130. The Phase 1 accord between the world’s top two economies helped boosted the outlook for global trade, pushing oil prices higher on Thursday. That mood was further boosted after the U.S. Senate approved changes to the U.S.-Mexico-Canada Free Trade Agreement following the signing of the Phase 1 deal. Still, prices are being held back after the International Energy Agency forecast that oil supply would exceed demand for crude from the Organization of the Petroleum Exporting Countries, even if members are fully compliant in their agreement with Russia and other producers to curb output. Natural gas can dip lower 145 while facing resistance near 151. U.S. natural gas futures fell to a fresh five-month low on Thursday on a smaller than usual weekly storage draw and midday forecasts for less cold weather through the end of January than previously expected.
BASE METAL –
Base metals may trade with mixed bias. Copper may recover towards 455 while taking support near 450. London copper traded little changed on Friday after falling in the previous two session ahead of the release of data from China that is expected to show that growth in the world’s secondbiggest economy slowed in 2019. China is the biggest user of copper and its economic health is closely tracked by metals industry participants.
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