MCX MORNING UPDATE
BULLION : –
Bullion counter may witness some selling pressure at higher levels as gold eased on Monday, pressured by optimism over U.S.- China trade ties following a report of “constructive talks” over the weekend, but held within a tight range as caution set in with investors awaiting concrete signals on the negotiations. The United States and China had a high-level phone call on Saturday, Chinese state media Xinhua said on Sunday, but it gave no further details. The two sides discussed each other’s core issues for the first phase of an initial trade agreement. Hedge funds and money managers reduced their bullish positions in COMEX gold and silver contracts in the week to Nov. 12, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. U.S. retail sales rebounded moderately in October supported by the lowest unemployment rate in nearly 50 years, data showed on Friday.
Crude oil may trade with sideways path. Oil prices were little changed on Monday following steady gains in the previous week with investors awaiting fresh clues over prospects for a trade deal between the United States and China, shrugging off concerns over steadily rising oil supplies. The 16-month trade war between the world two biggest economies has slowed economic growth around the world and prompted analysts to lower forecasts for oil demand, raising concerns that a supply glut could develop in 2020. A monthly report from the International Energy Agency (IEA) put downward pressure on prices, after it estimated that non-OPEC supply growth would grow to 2.3 million barrels per day (bpd) next year compared, with 1.8 million bpd in 2019, citing production from the United States, Brazil, Norway and Guyana. China and United States had constructive talks on trade in a high-level phone call on Saturday, state media Xinhua said, but offered few other details in a report released on Sunday.
BASE METAL :-
Base metals may trade with sideways bias. London copper prices edged lower on Monday as concerns over an economic slowdown in top consumer China weighed on the market, although hopes of a Sino-U.S. trade deal kept investor optimism afloat, curbing sharp declines in the metal. China’s October refined copper output rose 17.9% year-on-year to a record high of 868,000 tonnes. China’s industrial output grew significantly more slowly than expected in October, underlining fears of a sharp drop in demand in the world’s largest consumer of metals. China’s central bank is expected to cut a key interest rate after it extended 200 billion yu n through its medium-term lending facility on Friday. Headline aluminum inventories in LME-registered warehouses rose by 44,200 tonnes to a little under 1.1 million tonnes, the highest since June.
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