MCX MORNING UPDATE
Bullion counter may witness sideways movement to upside bias. Gold traded in a tight range on Monday as strong U.S. economic data fuelled investors’ appetite for riskier assets and dented the metal’s safe-haven appeal. U.S. homebuilding surged to a 13- year high last month as activity increased across the board, while production at factories increased for a second straight month, data showed on Friday. Gold can recover towards 40100 while taking support near 39600 while silver can test 47000 while taking support near 46500. U.S. President Donald Trump sought on Sunday to assure American farmers and ranchers hit by a protracted tariff war with China that a trade agreement he signed with Beijing will lead to major purchases of U.S. agricultural products. Chinese Vice Premier Liu He said Beijing and Washington signing the Phase 1 deal had created a beneficial condition for future Sino-U.S. relations, according to a state media Xinhua report. Philadelphia Federal Reserve Bank President Patrick Harker said on Friday that a robust labour market was boosting consumer confidence and lifting the U.S. economy, despite headwinds such as a global slowdown and trade uncertainty.
Crude oil may witness lower level buying on supply concerns as oil prices jumped on Monday after two large crude production bases in Libya began shutting down amid a military blockade, setting the stage for crude flows from the OPEC member to be cut to a trickle. Crude oil can recover towards 4250 while taking support near 4160. In the latest development in a long-running conflict in Libya, where two rival factions have claimed the right to rule the country for more than five years, the National Oil Corporation (NOC) on Sunday said two big oilfields in the southwest had begun shutting down after forces loyal to the Libyan National Army closed a pipeline. Also on Sunday, foreign countries agreed at a summit in Berlin on Sunday to shore up a shaky truce in Libya, even as the talks were overshadowed by the latest blockade. Natural gas can dip lower 130 while facing resistance near 145. U.S. natural gas futures fell to their lowest in over three years on Friday as near record production and weeks of warmer-than-normal weather let utilities to keep more gas in storage, erasing concerns about shortages and price spikes this winter.
BASE METAL –
Base metals may trade with mixed bias. Copper may recover towards 457 while taking support near 452. London copper prices were steady on Monday, as top consumer China posted solid growth in key metal consuming sectors, but trading volume was low ahead of a long holiday in the country. China’s industrial output and retail sales in December as well as 2019 fixed-asset investment all rose better than expected. China’s market regulator published new standards for high-grade copper scrap and aluminium scrap metal on Sunday, shedding some light on what material will be allowed into the country from the second half of this year.
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