Copper On MCX Settled Down

Copper on MCX settled down -1.11% at 372.95 ahead of a meeting of the U.S. Federal Reserve and economic data from top consumer China that could yield clues to future demand growth. China's economy is expected to show steady growth in May, buoyed by solid gains in trade and investment as economic ties with the United States take a positive turn and infrastructure spending cushions domestic growth.

Traders were watching stock movements in LME approved warehouses which rose 2,700 tonnes to 279,575 tonnes, but overall inventories are still down more than 20 percent since May 4. All of the industrial metals have been hit by the chill coming off Beijing's attempts to cool an overheating shadow banking sector. Investors are now focusing on the upcoming 2-day Federal Open Market Committee (FOMC) meeting which starts on 13th June looking for hints of its interest rate projections.

Earlier this year, the Federal Reserve announced there could be three or four rate hikes this year. The central bank is widely expected to raise interest rates by 25 basis points this week, but a recent weak run of US inflation data and a lack of progress on the Trump agenda has caused doubts among market observers that the Fed's 2% inflation goal will be met by the end of this year.

Technically market is under long liquidation as market has witnessed drop in open interest by -10.93% to settled at 15084 while prices down -4.2 rupees, now Copper is getting support at 371.4 and below same could see a test of 369.9 level, And resistance is now likely to be seen at 375.3, a move above could see prices testing 377.7.

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Suhani Verma

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