MCX MORNING UPDATE
BULLION – Bullion counter may trade with sideways bias. Gold prices inched higher on Friday on a softer dollar and caution about Sino-U.S. trade talks, while investors looked for clarity on the future path of U.S. interest rates. The number of Americans filing applications for unemployment benefits increased less than expected last week, pointing to strong labour market conditions that should continue to support an economy growing at a moderate pace. U.S. President Donald Trump said Fed Chairman Jerome Powell job is safe, even though he was not thrilled with the central bank after it moved to lower interest rates by a quarter of a percentage point on Wednesday.U.S. And Chinese deputy trade negotiators resumed face-to-face talk for the first time in nearly two months on Thursday, as the world two largest economies try to bridge deep policy differences and find a way out of their protracted trade war.
ENERGY- Base metals may trade with sideways bias as London copper prices inched higher in early trade on Friday, boosted by U.S. data showing August home resales at a 17-month high, while the number of Americans filing for unemployment benefits rose less than expected last week. Copper may test 452. Peru expects its copper production to grow 27% and gold output to expand 12% in the next three years by 2022, the country’s energy and mines minister said on Thursday. Copper, widely used in construction and power, nonetheless remained on course for a 3% drop this week, which would mark its steepest weekly fall since the week ended Aug. 2 amid concerns over tepid demand in top copper consumer China. The global nickel market deficit widened to 6,700 tonnes in July from a revised shortfall of 2,700 tonnes in the previous month, the International Nickel Study Group (INSG) stated recently.
BASE METAL – Base Crude oil may remain on positive path .Oil futures prices have gyrated wildly as traders have tried to assess the impact of last week attacks on Saudi Arabia oil infrastructure on the actual availability of crude. Brent six-month calendar spread surged to a backwardation of more than $5.50 per barrel on the first trading day after the attacks, the highest for six years, showing oil traders were anticipating severe shortages in the very short term. Saudi Arabia energy minister has outlined an ambitious timetable for the early normalization of output by the end of the month. The United States and the International Energy Agency have also promised to make additional oil available from their emergency reserves if necessary, all of which has helped calm fears about shortages.
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