MCX MORNING UPDATES
BULLION – Bullion counter may trade with sideways to downside bias as gold prices reversed gains in aftermarket trading Wednesday, after the Federal Reserve cut interest rates but signaled that officials were divided on how much to ease policy in coming months. While the Fed left the door open to additional cuts, officials were split over Wednesday decision and the outlook for further reductions. The central bank outlook may have been unexpectedly optimistic for investors betting that falling interest rates will boost gold, which struggles to compete with yield-bearing assets when rates rise but becomes more appealing when borrowing costs go lower. Prices for the precious metal hit their highest level in six years earlier this month, amid expectations that yields in the U.S. and around the world are likely to further decline as global central banks fight slowing growth.
ENERGY- Crude oil prices declined on Wednesday after data showed an increase in U.S. crude oil inventories. U.S. commercial crude oil inventories increased by 1.1 million barrels during the week ending Sept. 13, according to the weekly petroleum status report released by the U.S. Energy Information Administration on Wednesday. At 417.1 million barrels, U.S. crude oil inventories were about 2 percent below the five-year average for this time of year. 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 speculators widened positions amid demand in the spot market. Copper prices fell on Wednesday as concern about demand and economic growth dominated sentiment, though rising hopes for a solution to a prolonged trade dispute between China and the United States limited losses. Benchmark copper on the London Metal Exchange ended down 0.1% at $5,814 a tonne. Prices of the metal used widely in the power and construction industries hit a 1-1/2-month high of $5,980 last week. ShFE lead fell as much as 1.9% to a one-month low on a rising supply outlook after Belgium Nyrstar said it had temporarily reopened an old lead-processing plant in Australia.
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