Favorable unemployment claims data from the US coupled with weakness in the US dollar helped base metals complex to trade higher on the LME on Thursday. News that Greece reached an agreement on austerity measures led to rise in the US as well as the European markets yesterday which also acted as a further supportive factor for metal prices.
Depreciation in the Indian Rupee (INR) led further gains on the domestic bourses on Thursday. The INR depreciated around 0.8 percent in yesterday’s trading session and closed at 49.44.
Copper top performer, MCX copper gains 2.2%
Copper was the top performer on Thursday, as the metal rose around 1.9 percent on the LME and by 2.2 percent on the MCX.
Expected demand from China, a weaker dollar and continuously declining LME inventories acted as a positive factor for the red metal prices yesterday.
Prices touched an intra-day high of $8765/tonne and closed at $8740/tonne on Thursday. MCX Copper February contract hit an intra-day high of Rs434.70/kg and ended its trading session at Rs434.20/kg yesterday.
Outlook
Base metals are expected to trade with a sideways bias today, on account of mixed sentiments in the global markets due to uncertainty over Greece debt worries coupled with a stronger dollar.
However, on the domestic platform the base metals complex are expected to witness gains on account of depreciation in the Indian Rupee.
Courtesy: Angel Commodities
Looking for a trading partner? visit commodityonline.com/franchisee
