MCX MORNING UPDATES
BULLION – Bullion counter may remain on sideways path. Gold prices traded steady on Tuesday, after retreating from an over six-year peak hit in the previous session, as U.S. President Donald Trump predicted a trade deal with China and calmed global markets that have been rattled by new tariffs. Gold prices on Monday surged to their highest in more than six years, surpassing the $1,550 mark in early trade, before paring gains after Washington and Beijing indicated a ramping down of their trade spat. U.S. President Donald Trump on Monday flagged the possibility of a trade deal with China, and said he believed Beijing was sincere in its desire to reach an agreement. The markets are fully priced for a quarter-point cut in rates next month, and over 100 basis points of easing by the end of next year.
ENERGY- Crude oil may trade with positive path as oil prices rose on Tuesday after U.S. President Donald Trump said he expected to sign a trade deal with China, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling. U.S. President Donald Trump on Monday predicted a trade deal with China after positive gestures by Beijing, settling global markets that have been roiled by new tariffs from the world two largest economies. Oil prices have fallen around 20% from a 2019 high reached in April, in part because of worries that the U.S.-China trade conflict is hurting the global economy, which could dent demand for oil. U.S. natural gas futures rose on Monday to post their best day in more than a week on forecasts for warmer-than-normal weather that could boost cooling demand and as the market weighed potential impact to output from tropical storm activity.
BASE METAL – Base metals may trade with mixed path. Copper prices rose on Tuesday after sentiment was boosted by signs of progress in resolving a prolonged trade war between the United States and China. U.S. President Donald Trump on Monday predicted a trade deal with China after positive gestures by Beijing, but gains in metals were capped as the bruising trade war has a tendency to reverse direction in a short period of time. Copper, often used to gauge economic health, has been hit by the prospect of weaker global demand as the trade conflict between the world two biggest economies entered the second year, despite fundamentals pointing to a larger shortage of the commodity.
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