Except lead, all other base metals traded lower on the LME in yesterday’s trading session as uncertainty over Euro Zone debt crisis still persists and this acted as a negative factor for metals.
However, weakness in the US dollar resisted sharp decline on Thursday. Appreciation in the Indian Rupee (INR) led further decline on the domestic markets yesterday.
Lead was the only metal to witness gains on the LME as well as on the MCX in yesterday’s trading session. Factors that supported the metal prices are – continuously fall in LME lead inventories coupled with a weaker dollar. On a weekly basis, the metal inventories declined sharply by 2.7 percent to 371,950 tonnes on Thursday.
Lead touched an intra-day high of $2167/tonne and ended its trading session at $2162/tonne yesterday. MCX Lead prices hit an intra-day high of Rs105.4/kg and closed at the level of 104.95/kg on Thursday.
We expect base metals to trade with a sideways bias today taking mixed cues from a weaker dollar, upbeat sentiments in the global markets and concerns over Euro Zone debt worries. Any negative news or developments from the Euro Zone front will act as negative factor for prices.
Courtesy: Angel Commodities
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