BULLION - Bullion counter may trade on sideways path. Gold prices inched lower on Monday, extending losses after the metal hit a six-year peak on Friday, as investors rolled back expectations for a sharp interest rate cut at the end of this month, while tensions in the Middle East limited losses for the bullion. Expectations of an aggressive interest rate cut rose after New York Federal Reserve President John Williams argued for pre-emptive stimulus in a speech last week. But a subsequent clarification that his remarks were academic and "not about potential policy actions" shredded prospects for a 50-basis-point rate cut at the end of the month. Expectations for a rate cut of half a percentage point at the Fed's July 30-31 meeting edged out further on Monday to hit 14.5%, according to CME's FedWatch tool, down from as high as 71% last week. Meanwhile, confrontation in the global oil trade's most important waterway has escalated with footage showing the Iranian military defying a British warship when it seized a tanker in the Strait of Hormuz on Friday. Hedge funds and money managers raised their bullish stance in COMEX gold in the week to July 16, the U.S. Commodity Futures Trading Commission (CFTC) said in a report on Friday.
ENERGY- Crude oil may trade on upside path as oil prices rose on Monday amid high tensions in the Middle East after a British tanker was seized by the Iranian military at the end of last week. Irans Revolutionary Guards said they had captured a British-flagged oil tanker in the Gulf after Britain seized an Iranian vessel earlier this month, ratcheting up tensions along a vital international oil shipping route. Britain was weighing its next moves on Sunday, with few good options apparent as a recording emerged showing that the Iranian military defied a British warship when it boarded and seized the ship three days ago. Prime Minister Theresa Mays office said she would chair a meeting of Britains emergency response committee on Monday morning to discuss the crisis. The International Energy Agency (IEA) does not expect oil prices to rise significantly because demand is slowing and there is a glut in global crude markets. The IEA is reducing its 2019 oil demand growth forecast to 1.1 million barrels per day from 1.2 million bpd due to a slowing global economy. The number of rigs drilling for natural gas in the United States rose by 2 this week to 174, data from oil services firm Baker Hughes showed on Friday.
BASE METAL - Base metals may trade with upside path. China will further ease its economic policy to deal with a prolonged and costly trade war with the United States, but it would save more aggressive measures as last resorts should the dispute get uglier, policy sources say. Nickel prices fell on Monday as a buying spree that sent the metal used mostly in making stainless steel to its highest in more than a year, started to lose steam. Three-month nickel on the London Metal Exchange (LME) fell 1.2% to $14,555 a tonne, while the most-traded nickel contract on the Shanghai Futures Exchange dropped 2.3% to 114,920 yuan ($16,708.35) a tonne. China will further ease its economic policy to deal with a prolonged and costly trade war with the United States, but it would save more aggressive measures as last resorts should the dispute get uglier, policy sources say.
ENERGY- Crude oil may trade on upside path as oil prices rose on Monday amid high tensions in the Middle East after a British tanker was seized by the Iranian military at the end of last week. Irans Revolutionary Guards said they had captured a British-flagged oil tanker in the Gulf after Britain seized an Iranian vessel earlier this month, ratcheting up tensions along a vital international oil shipping route. Britain was weighing its next moves on Sunday, with few good options apparent as a recording emerged showing that the Iranian military defied a British warship when it boarded and seized the ship three days ago. Prime Minister Theresa Mays office said she would chair a meeting of Britains emergency response committee on Monday morning to discuss the crisis. The International Energy Agency (IEA) does not expect oil prices to rise significantly because demand is slowing and there is a glut in global crude markets. The IEA is reducing its 2019 oil demand growth forecast to 1.1 million barrels per day from 1.2 million bpd due to a slowing global economy. The number of rigs drilling for natural gas in the United States rose by 2 this week to 174, data from oil services firm Baker Hughes showed on Friday.
BASE METAL - Base metals may trade with upside path. China will further ease its economic policy to deal with a prolonged and costly trade war with the United States, but it would save more aggressive measures as last resorts should the dispute get uglier, policy sources say. Nickel prices fell on Monday as a buying spree that sent the metal used mostly in making stainless steel to its highest in more than a year, started to lose steam. Three-month nickel on the London Metal Exchange (LME) fell 1.2% to $14,555 a tonne, while the most-traded nickel contract on the Shanghai Futures Exchange dropped 2.3% to 114,920 yuan ($16,708.35) a tonne. China will further ease its economic policy to deal with a prolonged and costly trade war with the United States, but it would save more aggressive measures as last resorts should the dispute get uglier, policy sources say.
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