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Wednesday, 26 June 2019

MCX MORNING UPDATES By CapitalStars 26 June 2019





BULLION - Bullion counter may witness profit booking at higher levels as gold prices slipped on Wednesday, moving further away from a six-year peak hit in the previous session, as the dollar gained after Federal Reserve officials played down expectations of aggressive monetary easing. Fed Chair Jerome Powell on Tuesday said the central bank is "insulated from short-term political pressures," pushing back against U.S. President Donald Trump's demand for a significant rate cut. Powell, however, said Fed policymakers are wrestling with whether uncertainties around U.S. tariffs, Washington's conflict with trading partners and tame inflation require a rate cut. Trump said on Twitter on Monday that the Fed "doesn't know what it is doing," adding that it "raised rates far too fast" and "blew it" given low inflation and slowing global growth. The United States hopes to re-launch trade talks with China after President Donald Trump and President Xi Jinping meet in Japan on Saturday, but Washington will not accept any conditions around the U.S. use of tariffs in the dispute, a senior administration official said on Tuesday.

ENERGY- Crude oil may trade on higher path oil prices rose over 1% on Wednesday to hit their highest in nearly a month as widely watched data showed U.S. crude stockpiles fell more than expected, underpinning a market already buoyed by worries over potential U.S.-Iran conflict. U.S. crude stockpiles dropped by 7.5 million barrels in the week ended June 21 to 474.5 million, compared with analyst expectations for a decrease of 2.5 million barrels, the data showed. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.3 million barrels. U.S. President Donald Trump threatened on Tuesday to obliterate parts of Iran if it attacked "anything American," in a new war of words with Iran, which condemned fresh U.S. sanctions on Tehran as "mentally retarded". U.S. natural gas futures were little changed on Tuesday after soaring more than 5% in the previous session as rising pipeline and liquefied natural gas (LNG) exports offset an expected decline in power sector demand.

BASE METAL - Base metals may trade with sideways bias. China's retail sales is seen growing at a slower-than-expected pace and would now overtake the United States only in 2021 rather than this year, as the Sino-U.S. trade war takes a toll on demand, said market researcher eMarketer. London copper retreated on Wednesday from a five-week high hit in the previous session, as the dollar recovered after comments from the U.S. Federal Reserve chairman curbed dovish enthusiasm. The dollar edged up from a three-month low as investors dialled back hopes for a strong U.S. rate cut, after Fed Chairman Jerome Powell stressed its independence from U.S. President Donald Trump, who is pushing for steep cuts. Dalian iron ore futures extended losses into a third session on Wednesday as concerns about tight supply eased, while expectations of slower demand in China for the steelmaking raw material added to the downward pressure.
 




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