MCX MORNING UPDATE
BULLION – Bullion counter may trade on sideways to positive side as gold rose on Thursday as investors bought the safe-haven metal amid new doubts about whether the United States and China will sign a trade deal after President Donald Trump signed legislation supporting protesters in Hong Kong, irking Beijing. Asian share markets wobbled, while the safe-haven yen rose against the dollar, after Trump’s move to sign into law congressional legislation backing Hong Kong protesters fuelled concern that efforts to end the long-running trade dispute between the world’s two biggest economies could become more complicated. US economic growth picked up slightly in the third quarter, while the number of Americans filing applications for unemployment benefits fell last week. New orders for key US-made capital goods increased by the most in nine months in October and shipments rebounded, suggesting some stabilization in business investment.
ENERGY- Crude oil may witness profit booking at higher levels as oil prices fell on Thursday, extending losses from the previous session after official data showed U.S. crude and gasoline stocks rose against expectations and production hit a record. Crude stockpiles in the United States swelled 1.6 million barrels last week as production hit a record high of 12.9 million barrels per day (bpd) and refinery runs slowed, the Energy Information Administration said. More bearish was a 5.1 million-barrel rise in gasoline stocks, compared with forecasts for a 1.2 million-barrel gain. Oil prices had risen earlier this week on expectations that China and the United States, the world’s two biggest crude users, would soon sign a preliminary agreement, putting an end to their 16-month trade dispute. Drillers cut three oil rigs in the week to Nov.27, bringing the countdown to 668, lowest since April 2017.
BASE METAL – Base metals may trade with sideways bias. Copper prices hit their highest in nearly three weeks on Wednesday, rising for a fourth day after U.S. President Donald Trump said Washington was in the “final throes” of work on a trade deal with China. The metal used in power and construction has fallen around 20% since the United States and China began their trade dispute in summer 2018 and global economic growth began to weaken. Combined copper inventories in LME and Shanghai Futures Exchange (ShFE) warehouses, at around 350,000 tonnes, are at typical levels for this time of year. But stockpiles in Chinese bonded warehouses, at 243,800 tonnes, are down from near 400,000 tonnes a year ago and the lowest since at least 2013. Chinese Yangshan import premiums, at $73, were rising back towards October’s 11- month high of $83.
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