MCX MORNING UPDATES
BULLION – Bullion counter may trade with sideways bias as gold prices were little changed on Wednesday as investors maintained a cautious stance ahead of the conclusion of U.S. Federal Reserve two-day meeting, where policymakers are expected to cut interest rates. Late-day swings in U.S. Federal funds futures implied late on Tuesday that traders see about a 51% chance that the Fed will lower key borrowing costs by 25 basis points after the policy-setting committee meets on Wednesday, according to the CME Group FedWatch tool. Late-day swings in U.S. Federal funds futures implied late on Tuesday that traders see about a 51% chance that the Fed will lower key borrowing costs by 25 basis points after the policy-setting committee meets on Wednesday, according to the CME Group FedWatch tool. U.S. President Donald Trump said on Tuesday his administration could seal a deal on trade with China before the U.S. presidential election, or an agreement could be reached the day after U.S. votersgo to the polls.
ENERGY- Crude oil may remain on weaker path as oil prices cooled on Wednesday as Saudi Arabia said the kingdom had fully restored its oil supply following attacks on its crude facilities although caution ahead of an expected U.S. interest rate cut kept wider financial markets in tight ranges. U.S. Treasury yields slipped ahead of an expected interest rate cut by the Federal Reserve at its two-day policy meeting on Wednesday. Saudi Energy Minister Prince Abdulaziz bin Salman said the kingdom has recovered supplies by tapping inventories, and lost oil output of 5.7 million barrels per day (bpd) by the end of September. Saudi Arabia oil output will be fully restored faster than thought following weekend attacks on production facilities, two sources briefed on developments also said on Tuesday, taking two or three weeks, not months as initially expected. U.S. natural gas futures eased on Tuesday from the prior session’s five-month high as gas followed the oil market lower after Saudi Arabia said it has fully restored it oil production.
BASE METAL – Base metals may trade with sideways bias as most industrial metals traded in tight ranges on Wednesday, as investors waited for clues on the U.S. Federal Reserve future monetary policy. Three-month copper on the London Metal Exchange (LME) edged up 0.1% to $5,828 a tonne by 0144 GMT, while the most-traded copper contract on the Shanghai Futures Exchange (ShFE) eased 0.2% to 47,270 yuan ($6,667.51) a tonne. ShFE lead fell as much as 1.9% to a one-month low on rising supply outlook after Belgium Nyrstar said it had temporarily reopened an old lead-processing plant in Australia.
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