MCX MORNING UPDATE
Bullion counter may trade with firm bias. Gold prices inched up on Monday, holding below a near two-month peak hit in the previous session, as investors hedged against risks in thin year-end trading after U.S. military strikes in the Middle East. Gold prices have risen about 18% this year, mainly due to the 17-month-long Sino-U.S. tariff war and its impact on global economic growth. U.S. officials said on Sunday that air strikes in Iraq and Syria against an Iran-backed militia group were successful, but warned that “additional actions” might still be taken in the region to defend U.S. interests. President Donald Trump was briefed by his top national security advisers on the air strikes against what U.S. officials said was an Iran-sponsored group in Iraq and Syria, Secretary of State Mike Pompeo said. Investors also kept a close eye on developments regarding a trade agreement between Washington and Beijing after Trump last week said there would be a signing ceremony for the first phase of the deal.
Crude oil may trade with upside bias as oil prices hovered around three-month highs on Monday following a higher-thane xpected crude inventory drawdown and optimism over an expected U.S-China trade deal, while traders kept a close eye on Middle East unrest. Markets showed little immediate reaction to news of U.S. air strikes in Iraq and Syria against an Iran-backed militia group, even as U.S. officials warned “additional actions” may be taken. The two countries on Dec. 13 announced a “Phase one” agreement that reduces some U.S. tariffs in exchange for what U.S. officials said would be a big jump in Chinese purchases of American farm products and other goods. In the Middle East, protesters on Saturday forced the closure of Iraq’s southern Nassiriya oilfield, while United States carried out air strikes on Sunday in Iraq and Syria against the Kataib Hezbollah militia group.
BASE METAL –
Base metals may trade with sideways bias. Copper prices have hit their highest since May after profits at industrial companies in top metals consumer China grew at their fastest pace in eight months and as Beijing and Washington moved closer to an initial trade deal. London aluminium prices fell in early trade on Monday and were on course for their first daily drop in seven sessions after Norsk Hydro said it had resumed bauxite,production in Brazil and was ramping up alumina output. Premiums for aluminium shipments to Japan for the first quarter of 2020 were set at $83 per tonne, down 14% from the previous quarter amid soft demand from electronics and auto companies, two sources directly involved in the pricing talks said.
Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.