MCX MORNING UPDATES
BULLION – Bullion counter may trade with sideways path as profit booking can be seen at higher levels. Gold prices dipped on Friday as the United States and China indicated they may resume talks to resolve their protracted trade conflict, putting the metal on track for a small weekly loss despite a strong month. China’s commerce ministry said on Thursday Beijing and Washington were discussing the next round of face-to-face talks scheduled for September, but added it was important for Washington to cancel a tariff increase. U.S. President Donald Trump also said some discussions were taking place on Thursday, ahead of a looming deadline for additional U.S. tariffs on Sept. 1. 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. Christine Lagarde, the European Central Bank’s next president, said on Thursday the bank still has room to cut interest rates if needed, although this may pose financial stability risk. Investors are also focused on a string of economic releases due over the weekend including China’s official manufacturing survey which would provide a good gauge of the real impact from the Sino-U.S. trade war.
ENERGY- Crude oil may trade with positive path. Oil prices eased on Friday after three days of gains, with concerns about the state of the global economy amid the U.S.-China trade war keeping prices in check. Worries about a slowdown in economic growth due to the U.S.-China trade war and the flow-on to oil demand have kept a lid on price gains, even as falling inventories indicate a balancing market. China commerce ministry said on Thursday the world two biggest economies were discussing the next round of face-to-face trade talks scheduled for September, but hopes for progress hinged on whether Washington could create favourable conditions. The approach of Hurricane Dorian toward Florida raised fears that offshore U.S. crude producers may slow output if the storm passes into the Gulf of Mexico over the weekend. Government data on Wednesday showed U.S. crude stocks dropped last week by 10 million barrels to their lowest since October as imports slowed. U.S. natural gas futures rose on Thursday to hit a one-month peak after a government report showed a weekly U.S. storage build broadly in line with estimates and on expectations for increased cooling demand due to warmer-than-normal weather.
BASE METAL – Base metals may trade with mixed path. China Jiangxi Copper Co produced 749,300 tonnes of refined copper cathode in January-June, up 3.5% from a year earlier, and 102,000 tonnes of copper concentrate during the period, up 0.2% year-on-year. Shanghai nickel prices hit a record high on Friday, as a waste spill at a nickel plant in Papua New Guinea sparked fear of some supply shortage. The premium for cash nickel over the three-month contract on the London Metal Exchange (LME) has spiked to a 10-year high of $99 a tonne, signaling tight nearby supply. One party holds 50% to 80% of available LME inventories.
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