Copper On MCX Settled Up 1.47%

Copper on MCX settled up 1.47% at 389.30 advanced to a four-month peak after data showed China's second quarter gross domestic product handily topped forecasts. The economy grew 6.9% in the three months to June 30, the same rate as the first quarter, the National Bureau of Statistics said earlier. Copper prices on LME also rose nearly 1.08 percent to settled at $5,989.75 a tonne, touching its highest level since early March, as the economic data from top consumer China helped reinforce expectations of strong demand.

Support also seen after a global deficit of copper will deepen this year as more mines in South America are due to be hit by strikes, although the market has already priced in the further disruptions. Earlier in the year the copper market was hit by a long strike at Chile's Escondida, the world's largest copper mine and a stoppage at No. 2 Grasberg mine in Indonesia.

Last week, workers at Antofagasta's Zaldivar mine in Chile voted to strike while Peruvian miners plan to begin an indefinite nationwide strike on July 19. Now traders are looking ahead this week's calendar features data on the U.S. housing sector, as well as surveys on manufacturing conditions in the Philadelphia and New York regions and weekly jobless claims.

The Fed hiked rates at its June meeting and stuck to its forecast for one more rate hike this year, but the subdued inflation outlook has since raised doubts over whether the U.S. central bank will be able to stick to its planned tightening path. Technically market is getting support at 386.2 and below same could see a test of 382.9 level, And resistance is now likely to be seen at 391.6, a move above could see prices testing 393.7.

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Suhani Verma

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