MCX MORNING UPDATES 21 SEP 2018

BULLION:-

Gold prices edged higher on Friday to a one-week high as the dollar weakened on receding fears of a full-blown Sino-U.S. trade war, with the yellow metal heading for its first weekly gain in four. Spot gold inched up 0.2 percent to $1,209.38, after touching its highest since Sept. 13 at $1,210.01. It has risen 1.3 percent so far this week. U.S. gold futures were up 0.3 percent at $1,214.30 an ounce. Investors are awaiting next week’s Federal Reserve meeting. The U.S. central bank is widely expected to raise benchmark interest rates and shed light on the path for future rate hikes. All 113 economists in the Reuters poll forecast the Fed would raise rates when it meets Sept. 25-26. It is expected to follow that up with one more before the end of this year, taking the fed funds rate to 2.25-2.50 percent. Higher rates dent demand for non-interest yielding gold and in turn boost the dollar in which it is priced. The dollar index was hovering near a ten-week low against a basket of major currencies. The dollar fell as resurgence in global risk appetite curbed safe-haven demand for the greenback. The U.S. economy will expand at a robust pace in coming quarters but slow to 2 percent by the end of 2019, according to forecasters polled by Reuters who unanimously said the escalating trade war with China was bad economic policy.

METALS:-

London copper rose on Friday and was on track to post its biggest weekly advance in four weeks as investors viewed that trade tariffs would have a softer impact to global growth than earlier feared. London Metal Exchange copper rose 1 percent to $6,140 a tonne, up nearly 3 percent this week and close to its highest in more than one month. Shanghai Futures Exchange copper edged up 0.1 percent to 49,510 yuan ($7,235) a tonne. The Shanghai Futures Exchange will be closed on Monday for the mid-autumn festival. The dollar struggled near two-month lows, while the yen also sagged on Friday on reduced safe haven demand amid a switch in investors’ view that the Sino-U.S. trade conflict would be less damaging to global growth than initially feared.  

ENERGY:-

Oil prices eased on Friday, pulling back after U.S. President Donald Trump urged OPEC to increase production at its meeting in Algeria, and slowing bullish momentum that had previously propelled the market toward four-year highs. Brent crude oil settled down 78 cents at $78.70 a barrel. U.S. light crude was down 32 cents to settle at $70.80 a barrel after rising nearly 2 percent on Wednesday. Global benchmark Brent has been trading just below $80 a barrel, near its highest level in almost four years, on expectations that U.S. sanctions against Iran, OPEC’s third biggest producer, will reduce global supply. Trump has imposed sanctions in response to Iran’s nuclear program that are to go into full effect on Nov. 4. Many buyers have already cut Iranian purchases ahead of the new regulations. It is unclear whether producers such as Saudi Arabia, Iraq and Russia can compensate for lost supply.  

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