MCX MORNING UPDATE
BULLION – Bullion counter may trade with sideways bias as gold prices held steady on Wednesday on prospects of a delay in the U.S.-China trade pact, while cautious investors awaited the Federal Reserve decision on interest rates later in the day. Investors expect the
U.S. Federal Reserve to cut interest rates by 0.25 percentage point for the third time this year later in the day, with Federal fund futures implying that traders see a 94% chance for a 25 basis point rate cut. Meanwhile, an interim trade agreement between the United States and China might not be completed in time for signing in Chile next month as expected but that does not mean the accord is falling apart, a U.S. administration official said on Tuesday. U.S. consumer confidence fell for a third straight month in October amid concerns about the short-term outlook for business conditions and job prospects, but remained at levels consistent with continued growth in consumer spending. Britain will hold its first December election in almost a century after Prime Minister Boris Johnson won approval from parliament on Tuesday for an early ballot aimed at breaking the Brexit deadlock.
ENERGY- Oil prices slipped on Wednesday, with U.S. crude falling for a third day after an industry report that stocks at the Cushing delivery hub for the benchmark rose last week, shrugging off a drop in overall inventories. Crude stocks at the Cushing, Oklahoma, and delivery hub for WTI rose by 1.2 million barrels, the American Petroleum Institute (API), an industry group, said. Demand concerns remain strong amid the 16-month old trade war between the United States and China, which has hit economic growth around the world, sapping demand for oil. The United States and China were continuing to work on an interim trade agreement, but it may not be completed in time for U.S. and Chinese leaders to sign it next month, a U.S. administration official said. The Organization of the Petroleum Exporting Countries and other producers including Russia – a grouping referred to as OPEC+ – have cut oil output by 1.2 million barrels per day to support prices since January.
BASE METAL – Base metals may trade with mixed bias. An interim trade agreement between the United States and China might not be completed in time for signing in Chile next month as expected, a U.S. administration official said, but stressing that does not mean the accord is falling apart. Copper prices in London fell on Wednesday as a possible delay in the trade deal between the United States and China weighed on sentiment. The global world refined copper market showed a 48,000 tonnes deficit in July, compared with a 36,000 tonnes deficit in June, the International Copper Study Group said in its latest monthly bulletin.
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