MCX MORNING UPDATE
Bullion counter may trade with upside bias. Gold prices rose to a near-two month high on Thursday, holding firm above the key $1,500 level, as investors braced for a robust equity rally to run out of steam, while volumes remained low in holiday trade. Gold is going to be supported moving forward through central bank buying, enhanced demand, strong technical and support in the market. The metal has gained about 18% so far this year and is on track for its best year since 2010, due mainly to the protracted U.S.-China trade dispute and its impact on the global economy. Beijing said on Wednesday it is in close touch with Washington on a trade deal signing ceremony, a day after U.S. President Donald Trump said that he and Chinese President Xi Jinping will have a ceremony to sign the recently struck trade deal.
Crude oil may trade with upside bias as oil prices rose on Friday, hitting three-month highs after data showed record online spending by U.S. consumers, stoking faith in the world no. 1 economy even before the hoped-for end to the trade war between Washington and Beijing. Oil prices have also been uoyed by robust hopes that the New Year will usher in an end to Te longrunning U.S.-China trade tariff war, a dispute that has overshadowed global economic growth prospects and left question marks over future demand for crude. U.S. natural gas futures surged to a near two-month peak on Thursday as weather forecasts turned cooler, which could boost heating demand, and on short-covering as the contract nears its expiry.
BASE METAL –
Base metals may trade with sideways bias. China is in close touch with the United States on signing a Phase 1 trade deal, the country’s commerce ministry said on Thursday, adding that both sides are still going through necessary procedures before the signing. Zambia plans to make copper mining companies account for the gold they produce as it seeks to boost revenue from its mineral resources, a senior ministry of mines official said on Thursday. London copper rose to its highest in almost eight months on Friday, tracking a rally in Shanghai prices, on signs that China and the United States were closer to signing a Phase 1 trade pact. China’s top copper smelters on Thursday raised their floor treatment and refining charges (TC/RCs) for the first quarter of 2020 to $67 a tonne and 6.7 cents a pound, according to two people with knowledge of the matter.
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