MCX MORNING UPDATES
BULLION – Bullion counter may remain on sideways to positive path. Gold prices were steady, holding above the key $1,500 an ounce level, as investors awaited a U.S. central bankers conclave for clues on future interest rate cuts. Minutes of the Federal Reserve July meeting, showed policymakers were divided over whether to cut interest rates, but were united in wanting to signal they were not on a path to more easing. Focus has now shifted to the central bank Jackson Hole seminar later this week, where Fed Chairman Jerome Powell will give a speech on Friday. SPDR Gold Trust, the world largest gold-backed exchange traded fund, said its holdings rose 0.21% to 845.17 tonnes on Tuesday.
ENERGY- Crude oil may trade with sideways to positive path. Prices for Brent oil rose above $60 a barrel for the first time in over a week on Wednesday amid data that showed a larger-than-expected drawdown in U.S. crude inventories, but ongoing worries about a global economic recession capped gains. Oil prices rose on following a drawdown in U.S. crude inventories, but gains in fuel inventories and persistent concerns over the global economy and future demand outlook capped gains. Crude inventories fell by 2.7 million barrels in the week to Aug. 16, compared with expectations for a drop of 1.9 million barrels. However, gasoline stocks rose by 312,000 barrels and distillate supplies grew by 2.6 million barrels. Tensions in the Middle East remained in focus as U.S. Secretary of State Mike Pompeo said on Tuesday that the country would take every action it can to prevent an Iranian tanker sailing in the Mediterranean from delivering oil to Syria in contravention of U.S. sanctions. U.S. natural gas production increased by 12% in 2018 to 28.5 Bcfd (0.81 X 109 m3/d), reaching a new record high for the second consecutive year, according to the U.S. Energy Information Administration (EIA), a surge in production to all-time highs and forecasts for moderating weather limited gains.
BASE METAL – Base metals may trade on mixed path. Most industrial metals on the LME dipped, after the U.S. Federal Reserve signalled that it was not on a preset path to more monetary policy easing. Three-month copper on the London Metal Exchange fell 0.2% to $5,719.50 a tonne, Chile Codelco, the world top copper producer, said it had shut down its Ventanas smelter along Chile central coast for maintenance until Sept. 3, but the shutdown would not impact production. Xinfa Group, one of China’s top aluminium producers, has shut down an aluminium production line after an explosion at a plant in the northwestern Chinese region of Xinjiang, according to a company source.
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