MCX MORNING UPDATE
Bullion counter may open in red as gold prices touched their lowest in a week on Monday as positive developments towards an interim trade deal between the United States and China lifted demand for riskier assets and boosted the dollar. US national security adviser Robert O’Brien said on Saturday that a phase 1 trade agreement with China is still possible by the end of the year, while warning that President Donald Trump would not turn a blind eye to what happens in Hong Kong. Gold demand remained subdued in China last week against a backdrop of slowing economic growth, and in Hong Kong where protests continued, while prices in India flipped into discount as demand eased. India gold imports in October fell a third from a year earlier, dropping for a fourth straight month. US national security adviser Robert O’Brien said on Saturday that a phase 1 trade agreement with China is still possible by the end of the year, while warning that President Donald Trump would not turn a blind eye to what happens in Hong Kong.
Crude oil may witness further upside movement as oil prices began the week on a brighter note on Monday, posting early gains as positive noises from Washington over the weekend rekindled optimism in global markets that the United States and China could soon sign a deal to end their bitter trade war. Monday higher opening prices came after U.S. national security adviser Robert Brien said on Saturday that an initial trade agreement with China is still possible by the end of the year. This came a day after both President Donald Trump and Chinese President Xi Jinping expressed a desire to sign an initial trade deal and defuse a 16-month tariff war that has lowered global growth – though Trump also he had yet to decide whether he wanted to finalise a deal while Xi said he would not be afraid to retaliate when necessary.
BASE METAL –
Base metals may trade with sideways to weak bias. The Philippine Nickel Industry Association (PNIA) is projecting stronger production in 2020 on the back of a nickel export ban by Indonesia and higher prices. Mines and Geosciences Bureau (MGB) said nickel production grew 3% to 11.306 million dry metric tons (DMT) in the first half of 2019. Indonesia has banned nickel ore exports starting 2020 in a bid to develop a processing industry, thereby capturing more value-added from the nickel trade. Meanwhile, PNIA said it has entered into a partnership with the China Industrial Association of Power Sources (CIAPS) through its Power Battery Application committee in a bid to tap demand from the growing electric vehicle industry.
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