MCX MORNING UPDATE
BULLION – Bullion counter may trade on mixed path. Gold slipped on Friday and was set for its worst month in three years as hopes for a US China trade deal supported demand for riskier assets and the dollar, weighing on the safe-haven metal. US President Donald Trump on Wednesday signed into law congressional legislation backing protesters in Hong Kong despite angry objections from Beijing. US President Donald Trump on Wednesday signed into law congressional legislation backing protesters in Hong Kong despite angry objections from Beijing. China warned the United States on Thursday that it would take “firm counter measures” in response to the US legislation. China reiterated its pledge to further widen market access for foreign capital and lower non-tariff trade barriers, as it aims to boost flagging trade amid a slowing economy and a tariff dispute with the United States.
ENERGY – Crude oil may witness profit booking at higher levels as oil prices were steady on Friday in quiet trade with the U.S. Thanksgiving holiday underway, while investors awaited a meeting of OPEC and its allies next week that may result in the extension of a production cut agreement to support the market. Next week meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, are high on investors list of things to watch. Russian oil companies proposed on Thursday not to change their output quotas that are part of the deal that runs until end-March, putting pressure on OPEC+ to avoid any major shift in the policy when the group meets in Vienna. China warned the United States on Thursday that it would take firm countermeasures in response to U.S. legislation backing anti-government protesters in Hong Kong.
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 11- month high of $83.
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