MCX MORNING UPDATE
BULLION – Bullion counter may witness some lower level buying after yesterday sharp fall. Gold prices inched higher on Thursday as investors resorted to bargain hunting after a sharp drop in the previous session, although a firm dollar limited the gains. The dollar index posted its sharpest daily gain in three months overnight and held steady in Asian trade as investors welcomed U.S. President Donald Trump hints of progress toward a trade deal with China. The United States is imposing sanctions on certain Chinese entities for knowingly transferring oil from Iran, U.S. Secretary of State Mike Pompeo said in what he called fresh actions to intensify pressure on Iran. Chicago Federal Reserve president Charles Evans said on Wednesday he backed the Fed two recent rate cuts but feels the central bank is now well-positioned to see how economic data
ENERGY- Crude oil may witness lower level buying as oil prices held nearly flat on Thursday after U.S. President Donald Trump said a resolution to the China-U.S. trade rift would come sooner than expected, helping to stave off pressure from rising oil supplies and worries about global growth. Both Brent and WTI on Wednesday hit their lowest marks since the attacks on Saudi Arabian oil facilities on Sept. 14, weighed down by a surprise 2.4 million barrels build in U.S. crude inventories last week and a faster than expected recovery of Saudi production capacity. A firmer dollar, which posted its sharpest daily gain in three months overnight and held steady in Asian trade, also weighed on oil prices as it makes dollar-traded fuel imports more costly for countries using other currencies.
BASE METAL- Base metals may trade with sideways to positive bias. Copper prices held steady on Thursday in thin trade, as market participants refrained from taking big positions ahead of a week-long holiday in top metals consumer China. Traders also shrugged off U.S. President Donald Trump’s comment that a deal to end a nearly 15-month trade war with China could happen sooner than people think. China’s nickel ore imports from Indonesia rose 26.5% year-on-year, customs data showed, as stainless steel producers stocked up on raw materials ahead of a ban on exports from the Southeast Asian country.