Copper on MCX settled up 0.23% at 324.05 as prices remained supported after latest Chinese economic data suggested stronger growth in the next few months. Data showed faster-than-expected growth in U.S. consumer inflation last month helped support the case for the Federal Reserve to raise interest rates later this year. Inflation is a key factor the U.S. central bank considers when deciding monetary policy.
Global copper stockpiles tracked by the LME fell for a fourth day, the longest declining streak since June 22. Encouraging signals from China's housing market and indications of a revival in its factory sector over the summer have encouraged views that demand is quietly cranking up for the third quarter. China will support asset management companies converting debt into equity stakes for steel and coal firms, and provide credit support to competitive companies with overcapacity issues, its top banking regulator said. Consumer prices in the U.S. increased by slightly more than expected in the month of August, according to a report released by the Labor Department.
The Labor Department said its consumer price index rose by 0.2 percent in August after coming in unchanged in July. With food and energy prices both unchanged during the month, the uptick in consumer prices reflected an increase in core prices. With a drop in retail inventories offsetting an uptick in manufacturing inventories, the Commerce Department released a report showing that total U.S. business inventories came in flat in the month of July. Technically market is under short covering as market has witnessed drop in open interest by -2.69% to settled at 26185, now Copper is getting support at 322.6 and below same could see a test of 321 level, and resistance is now likely to be seen at 325.3, a move above could see prices testing 326.4.
Copper trading range for the day is 321-326.4.
Copper prices remained supported after latest Chinese economic data suggested stronger growth in the next few months.
Global copper stockpiles tracked by the LME fell for a fourth day, the longest declining streak since June 22.
Investors assessed a mixed bag of U.S. economic data released throughout the week, ahead of U.S. Federal Reserve policy meeting.
Courtesy: Kedia Commodities