MCX Bullion News Updates

Gold prices-Gold added to an overnight surge in prices on Tuesday, as escalating geopolitical tensions in the Middle East and a global stock market rout triggered safe-haven bids for the metal. Bullion, often seen as alternative investment during times of geopolitical and financial uncertainties, benefited from the risk-averse sentiment along with the Japanese yen and U.S. bonds. San Francisco Federal Reserve President John Williams said there will be three to five U.S. interest rate hikes this year as reasonable given the strength of the U.S. economy.

MCX Copper Tips-LME copper should range USD 4,580-4,650/mt during Asian trading hours Tuesday with pressure from Chinese stock market. Eyes will be on flash reading of December’s CPI from euro zone and Italy on Tuesday and San Francisco Federal Reserve Chairman Williams’ speech. Rallies for base metals are in sight in China after panic in market was released on Monday. But risks from Chinese stock market should be warned. The flash reading of December’s CPI from Germany misses forecast and November’s level and Germany’s adjusted CPI in 2015 dropped to a new low since 1995. This indicates that CPI from euro zone for December should also be soft, which will depress euro but in turn support dollar.

Crude oil prices-Crude prices rose on Tuesday as Asian stock markets stabilized following heavy losses in the previous session, but weak oil market fundamentals with production levels persistently above global demand kept a lid on gains. In fact, ANZ said the tensions between Saudi Arabia and Iran "will further aggravate the oversupply situation in 2016. Traders said market intelligence firm Genscape reported a build of over 480,000 barrels in U.S. Cushing crude stocks for the week to Jan. 1.

  

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