MCX MORNING UPDATE
Bullion counter can witness some bounce back at lower levels as gold prices rose on Thursday as fears of a pandemic heightened after coronavirus infections surged in Italy and Iran, triggering a move away from riskier assets. The number of new infections inside China – the source of the outbreak – was for the first time overtaken by fresh cases elsewhere on Wednesday, with Italy and Iran emerging as epicenters of the rapidly spreading illness. Italy has reported more than 400 cases and Iran has reported only 139 cases, but epidemiologist say the true number of cases must be many times higher. Gold can recover towards 42900 while taking support near 42400 while silver can recover towards 47400 while taking support near 46600. Public health officials on Wednesday warned Americans to prepare for more virus cases and New York City announced plans to provide up to 1,200 hospital beds if needed. Sales of new U.S. single-family homes raced to a 12-1/2-year high in January, pointing to housing market strength that could help to blunt any hit on the economy from the epidemic and keep the longest economic expansion in history on track.
Crude oil may extend its weakness as it can move towards 3400 while taking resistance near 3520 .Oil prices fell for a fifth day on Thursday to their lowest since January 2019 as a growing number of new coronavirus cases outside of China deepened fears that the global economy will slow and lower crude demand. Brent prices have dropped 11% in the past five trading sessions through Thursday, the biggest five-day percentage loss since August 2019. WTI has declined 10.8% over the same period, also the biggest five-day percentage drop since August 2019. U.S. crude oil stockpiles increased by 452,000 barrels to 443.3 million barrels, the EIA said, which was less than the 2-million-barrel rise analysts had expected. Natural gas can slip lower towards 127 while taking resistance near 134. U.S. natural gas futures fell on Wednesday, following a collapse in crude futures due to the spread of the cornavirus, despite cooler-than-expected weather forecasts through mid-March.
BASE METAL –
Base metals may trade with weak bias. Copper may move lower towards 420 while taking resistance near 426. Copper prices slipped on Thursday as rising inventories indicated demand remained weak amid a fast-spreading coronavirus that has threatened to dent global economic growth. Copper stocks in warehouses approved by the London Metal Exchange (LME) rose to a three-month high at 221,425 tonnes, latest data showed. In China, inventories in warehouses tracked by the Shanghai Futures Exchange (ShFE) have surged 120% in five weeks to a near two-year high at 298,619 tonnes by the end of last week, the bourse’s data showed.
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