MCX Bullion News Update

Gold prices-Gold clung to small overnight gains on Tuesday but was within striking distance of a nearly six-year low, pressured by a robust dollar and a looming U.S. interest rate hike. But the metal wasn't far from $1,052.46, it’s lowest since Feb. 2010 hit last week. Bullion also posted its biggest monthly drop in 2-1/2 years in November with a 7-percent decline. Investors have been positioning for a U.S. rate hike, expected this month at the Federal Reserve's Dec. 15-16 policy meet, by selling non-interest-paying gold. A U.S. payrolls report on Friday will be closely watched for clues about the strength of the economy and its impact on the Fed's monetary policy.

MCX Copper Tips-LME copper will move in a range of USD 4,540-4,600/mt during Asian trading hours Tuesday. Markets will focus on China’s official PMI, Caixin manufacturing PMI and non-manufacturing PMI for November. The official PMI should improve over October’s but still stay below 50. Official and Caixin’s November PMI for China are not promising given the weak manufacturing, which is mirrored by weakening profit at Chinese industrials in October released last week. Eurozone manufacturing, in contrast, is showing mild improvement. European Central Bank is thus expected to expand quantitative easing measures soon.

Crude oil prices-Crude oil prices held at low levels in early trading in Asia on Tuesday as traders bet on continued high production from the Organization of the Petroleum Exporting Countries (OPEC) ahead of its meeting later this week. The focus for markets this week will be the 168th OPEC Conference on Friday and U.S. crude oil inventories. The market will now be expecting crude oil stocks to decline through to the end of the year, in line with seasonal patterns. A failure to do so could see WTI crude fall through $40 per barrel in coming weeks," ANZ said on Tuesday.