MCX MORNING UPDATES
BULLION – Bullion counter may remain on upside path. Gold prices climbed up on Thursday, as fears of an economic slowdown continued, amid the protracted Sino-U.S. trade conflict and expectations of monetary stimulus, keeping the save-haven metal in demand. The U.S. Treasury yield curve remains inverted, which is commonly considered a sign of an impending recession. On Wednesday, underscoring the gloomy global sentiment, yields on 30-year U.S. Treasuries and 10-year German bunds hit record lows. The U.S. Federal Reserve and the European Central bank are expected to cut rates next month, while many investors believe the Bank of Japan could also join the fray if market sentiment weakens further. The Trump administration on Wednesday made official its extra 5% tariff on $300 billion in Chinese imports and set collection dates of Sept. 1 and Dec. 15.
ENERGY- Crude oil may trade with positive path as oil prices clung to gains on Thursday after official data confirmed a big drop in U.S. crude inventories, helping ease concerns about weakening demand, but worries about wider economic growth held prices in check. U.S. crude oil inventories fell last week by 10 million barrels, compared with analysts expectations for a decrease of 2.1 million barrels, as imports slowed, the Energy Information Administration said. Distillate stockpiles, which include diesel and heating oil, fell by 2.1 million barrels, versus expectations for a 918,000-barrel increase, the EIA data showed. The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers have been restraining supply for most of the period since Jan. 1, 2017. The alliance, known as OPEC+, in July renewed the pact until March 2020. Global growth has been hit by the trade war between the United States and China, which shows no signs of easing.
BASE METAL – Base metals may trade with sideways path as industrial metals were mixed on Thursday, as demand outlook was clouded by little progress on U.S.-China trade war front. The Trump administration on Wednesday made official its extra 5% tariff on $300 billion in Chinese imports and set collection dates of Sept. 1 and Dec. 15, prompting hundreds of U.S. companies to warn of price hikes. The premiums of LME cash nickel over the three-month contract rose to a decade-high of $97 a tonne, indicating a shortage of nearby supply. One party holds 50% to 80% of available LME inventories, data showed. Nickel prices hit their highest in a week on Wednesday as speculators bought on fears of shortages from major producer Indonesia, while at least half of London Metal Exchange inventories were under the control of one party.
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