Technically Copper market is under short covering and getting support at 418.1 and below same could see a test of 415 levels and resistance is now likely to be seen at 426.1, a move above could see prices testing 431.
Copper on MCX settled up 0.75% at 421.15 gained on short covering as prices moved higher and were set to end the week in positive territory as the prospect of strikes at copper mines in Chile, including Escondida, the world's largest, drew nearer.
The main union at Chile's Caserones copper mine said on Wednesday that a last round of labour negotiations with mine operator Lumina Copper had broken down and that a strike was imminent. The main union at Chile’s Caserones copper mine said on Wednesday that a last round of labor negotiations with mine operator Lumina Copper had broken down and that a strike was imminent.
Last night the dollar index jumped 0.54% to 95.61 overnight as investors bet global trade tensions and a robust US economy would continue to support the currency. Better-than-expected data on US initial jobless claims and generally rising producer prices also helped the dollar hold its gains.
LME base metals closed mixed on Thursday. Data from China shown China’s PPI, a gauge of factory gate inflation, rose 4.6% in July from a year earlier, compared with an acceleration of 4.7% in June, data from the National Bureau of Statistics showed on Thursday.
On a monthly basis, the PPI rose 0.1% in July, compared with a 0.3% growth in June. The CPI rose 2.1% from a year earlier in July, faster than June's 1.9% growth.
On a monthly basis, the CPI rose 0.3% in July after it edged down 0.1% in June.
--Copper trading range for the day is 415-431.
--Copper prices gained supported by higher-than-expected Chinese consumer price index and producer price index for July.
--China’s exports growth unexpectedly accelerated in July despite fresh U.S. tariffs, while its trade surplus with the United States remained near record highs.
--China’s imports of copper concentrate rose to an all-time high last month as Chinese smelters ramped up purchases to feed their growing capacity.
Courtesy: Kedia Commodities