Aluminium On MCX Settled Down -1.29% - Ways2Capital

On MCX settled down -1.29% at 122.25 on the speculation that Chinese base metals demand is expected to taper off in the second half of the year also pressure seen after US services sector activity slowed in May as new orders tumbled, but a jump in employment to a near two-year high pointed to sustained labor market strength despite a deceleration in job growth last month. LME aluminium is heading towards a volatile phase.

With uncertainty brewing in the oil market due to souring political relationships among countries in the Middle East and North Africa (MENA), the light metal commodity is likely to experience a bumpy ride ahead. Saudi Arabia, Bahrain, Egypt and UAE announced to sever all kinds of diplomatic ties with Qatar on June 5, saying the nation supports terrorism. This should lead to transitory changes in the oil market dynamics which, in turn, may impact the commodity market. LME aluminium closed at US$1,916.50 per tonne on Friday, June 5, down from US$1,930 per tonne on Thursday, June 1.

Now market players will pay close attention on Thursday's event when the UK heads to the polls in the general election, whose outcome has become much less certain of late, after the latest opinion poll predicted that the Conservatives may fall short of the required number of seats for a majority.

A YouGov poll on Sunday, suggested that the Conservatives will win only 305 seats in the House of Commons, above Labour’s 268 but well short of the 326 seats needed for a majority. Technically market is getting support at 121.6 and below same could see a test of 120.9 level, And resistance is now likely to be seen at 123.5, a move above could see prices testing 124.7.

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Suhani Verma

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