MCX MORNING UPDATE
BULLION – Bullion counter may trade on sideways bias. Gold prices held steady on Friday after Britain managed to eke out a deal for its exit from the European Union, lifting risk appetite, while a sluggish dollar provided support to the metal. European Union leaders unanimously backed a new Brexit deal with Britain on Thursday, leaving Prime Minister Boris Johnson facing a battle to secure the UK parliament backing for the agreement if he is to take Britain out of Europe on Oct. 31. Lifting gold safe-haven appeal, weak retail sales data and industrial output report out of the United States fanned fears about the health of the world biggest economy, amid the prolonged Sino-U.S. trade dispute. The Chinese commerce ministry said on Thursday that China hoped to reach a phased agreement with the United States over trade as early as possible, and make progress on cancelling tariffs on each other goods.
ENERGY – Oil prices were stable on Friday ahead of data that analysts say could show China, the world largest oil consumer, just recorded its weakest quarter of economic growth in nearly three decades, dragged down by a trade dispute with the United States. China Jan-Sept crude oil throughput rose 6.2% year-on-year at 480.38 million tonnes, the National Bureau of Statistics said on Friday. U.S. crude inventories increased by 9.3 million barrels in the week ended Oct.11, compared with analysts expectations for an increase of 2.9 million barrels. Elsewhere, the joint technical committee monitoring a global deal to cut output between the Organization of the Petroleum Exporting Countries (OPEC) and partners, including Russia, found compliance with cuts for September stood at 236%, according to four OPEC sources OPEC and its allies have agreed to limit their oil production by 1.2 million barrels per day (bpd) until March 2020.
BASE METAL – Base metals may trade with positive bias. Copper prices advanced on Friday on a tentative divorce deal between the United Kingdom and the European Union, as well as hopes for a partial U.S.-China trade deal. Copper prices are widely used as a gauge of economic health, which has been hurt by the prolonged trade war between the United States and China, as well as volatilities caused by the lengthy Brexit negotiations. European Union leaders unanimously backed a new Brexit deal with Britain on Thursday, while China commerce ministry said China hoped to reach a phased agreement with the United States.