Copper on MCX settled up 0.48% at 324.35 as the dollar softened and China's property boom also lent support to prices. A real estate boom and stronger than expected factory activity over summer has brightened the outlook for metals, with copper also finding support from earlier than expected consumer restocking. Three-month copper on the London Metal Exchange erased early losses to edge up 0.1 percent to $4,782.50.
Prices are within reach of fresh highs above $4,794.50, a three-week top hit last week. Yesterday prices moved in the range with volumes remain low – investors are holding fire of central bank meetings in the US and Japan this week. The US Federal Open Market Committee will meet later on Tuesday and conclude its monetary policy meeting on Wednesday. While most market participants – only around 15 percent, according to the CME Group Fedwatch tool, compared with 12 percent last Friday – still do not anticipate the Fed raising rates in September, 60.1 percent now see a move in December. In Japan, the BoJ is expected to announce on Wednesday another round of stimulus to prop up the weak domestic economy.
The Japanese central bank introduced negative interest rates earlier this year but that has failed to ignite inflation or reverse nearly three decades of little to no growth. Support also seen after the update that the global world refined copper market showed an 83,000-tonne deficit in June, compared with a 69,000-tonne deficit in May, the International Copper Study Group (ICSG) said in its latest monthly bulletin. Technically now Copper is getting support at 322.6 and below same could see a test of 320.8 level, and resistance is now likely to be seen at 325.7, a move above could see prices testing 327.
--Copper trading range for the day is 320.8-327.
--Copper gained as the dollar softened and China's property boom also lent support to prices.
--A real estate boom and stronger than expected factory activity over summer has brightened the outlook for metals
--China boosted output to the highest level in at least six months as domestic smelters expanded capacity amid favorable margins.
Courtesy: Kedia Commodities