MCX MORNING UPDATE
Bullion counter may trade with sideways to upside bias. Gold prices held steady on Monday in thin trading, as investors refrained from making big bets ahead of the Christmas and New Year holidays while waiting for fresh developments on the Sino-US trade front. US President Donald Trump on Saturday said the United States and China would “very shortly” sign their so-called Phase One trade pact, but the markets still craved for further details of the agreement. China’s top lawmaking body on Saturday criticised the defence bill that Washington passed on Dec. 9 as “interference”, state news agency Xinhua reported. China, the world’s top bullion producer and consumer, launched its first gold options contract on the Shanghai Futures Exchange on Friday. Iran, Malaysia, Turkey and Qatar are considering trading among themselves in gold and through a barter system as a hedge against any future economic sanctions on them, Malaysian Prime Minister Mahathir Mohamad said on Saturday.
Crude oil may trade with weaker bias .Oil prices were mostly steady on Monday after three weeks of gains amid optimism the United States and China were close to signing a trade deal to end a tariff war, with President Donald Trump saying an agreement would be signed very shortly. The easing of tensions has improved business confidence and boosted the outlook for economic growth and energy demand. U.S. drillers may be anticipating higher prices as well and last week increased the number of their oil rigs by the most in a week since February 2018. Drillers added 18 oil rigs in the week to Dec. 20, bringing the total to 685, the most since November, Baker Hughes, an energy services company, said in its weekly report. U.S. economic growth nudged up in the third quarter, latest data shows, and the economy appears to have maintained the moderate pace of expansion as the year ended, supported by a strong labour market.
BASE METAL –
Base metals may trade with sideways bias. London copper prices slipped for a second straight day on Monday in thin pre-holiday trade, as a rally fuelled by optimism over the ‘phase one’ trade deal between the United States and top metals consumer China began to run out of steam. Chile’s state copper miner Codelco said on Friday it would cancel a contract awarded in November to a consortium led by Japanese firm Marubeni to construct a desalination plant to feed its northern mines.
Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.