MCX MORNING UPDATE
Bullion counter may remain on positive path as gold prices rose on Wednesday on heightened worries that a Sino-U.S. trade deal could hit a snag after President Donald Trump threatened fresh tariffs on Beijing and as the U.S. Senate passed a bill supporting Hong Kong anti-government protesters. The United States would raise tariffs on Chinese imports if no deal is reached with Beijing to end a trade war, Trump said on Tuesday. The U.S. Senate, in a unanimous vote, passed legislation on Tuesday aimed at protecting human rights in Hong Kong amid China’s crackdown on a pro-democracy protest movement that has gripped the vital financial center for months. The move was condemned by Beijing. The U.S. Fed has interest rates at the appropriate level for the U.S. economy but risks to the economic outlook are still tilted downwards, New York Fed President John Williams said on Tuesday.
Crude oil may trade with sideways to negative path amid doubts about US China trade deal and increasing stockpiles. Oil prices were steady on Wednesday, after falling the past two days, as a surge in U.S. stockpiles reinforced concerns about lackluster global economic growth amid the trade war between the United States and China, the world two biggest oil consumers. U.S. crude inventories rose 6 million barrels in the week to Nov. 15 to 445.9 million, compared with analysts expectations for a increase of 1.5 million barrels, data from industry group the American Petroleum Institute showed late on Tuesday. The increase in inventories in the United States, the world biggest oil user, added to concerns about a crude oversupply raised after Reuters reported that Russia, the world second-biggest producer, was unlikely to back deepening output cuts when the Organization of the Petroleum Exporting Countries (OPEC) meet on Dec. 5-6 in Vienna.
BASE METAL –
Base metals may trade with sideways to weak bias. London copper edged lower on Wednesday amid conflicting signals on the Sino-U.S. trade talks, but Shanghai copper jumped to its highest in more than a week after China central bank vowed to step up credit support to prop up the slowing economy. China accounts for nearly half of global copper consumption, estimated at around 24 million tonnes this year. Freeport McMorran Inc. expects treatment and refining charges for copper concentrates in 2020 to be well below last year levels as Chinese smelting capacity is expected to rise. The United States would raise tariffs on Chinese imports if no deal is reached with Beijing to end the trade war, U.S. President Donald Trump said on Tuesday, threatening an escalation of the spat that has damaged economic growth worldwide.
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