BULLION – Gold prices ended higher by 0.53 percent to close at $1346.1 per ounce. Prices rose over expectations that the US Federal Reserve might trim the interest rates considering the economic scenario. Even the European central bank might consider monetary easing which further supported the yellow metal. Markets will have a keen watch on the Fed monetary policy decision which will be announced later in the day. Hopes over a possible rate cut might support Gold prices. Optimism over a possible trade deal between US & China might dent the appeal for the bullion metal. President Donald Trump stated that the U.S. & China will resume with the trade talks before the two presidents meet at the G20 meet which will be held later this month in Japan. President trump has confirmed that he will be meeting China president Xi Jinping to try and resolve the prolonged trade spat.
ENERGY- Crude surged by 3.8 percent to close at $53.9 per barrel. Optimism over a possible trade deal between US and China amid supply disruption worries rising from the Middle East pushed the prices higher. Investors will have an eye on the G20 summit which is to be conducted in Japan later this month where U.S. President Donald Trump will likely meet Chinese President Xi Jinping. The two countries will resume with the trade talks before the presidents of the two countries meet in Japan. Tension arising from the Middle East after the last week attacks on two oil tankers in the Gulf of Oman further supported the prices.
BASE METAL – Base metals on the LME ended higher with Lead & Copper being the highest gainers in the pack. Prices rose over chances of a possible trade deal between US and China. President trump has confirmed that he will be meeting China president Xi Jinping to try and resolve the prolonged trade spat. He further added that the two countries; U.S. & China will resume with the trade talks before the two presidents meet at the G20 meet which will be held later this month in Japan. Optimism over a possible trade deal might puhs the industrial metal prices higher. Supply curbs have pushed iron ore prices higher. A sudden decline in supply by one of the top exported Brazil due to mine closure for inspection which started the deadly landslide which killed over 200 people. The supply situation further worsened after the tropical cyclone that struck in late March 2019 in north-western Australia which is the main iron ore producing region.
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