Copper supply crunch positive for prices
Mar 28 2012, 12:08 | By Moneycontrol.com
Copper prices are seeing an uptick as supplies are tight.
Image: SME Mentor
Angel Commodities has come out with its report on international commodities. According to the research firm, continuously falling LME copper inventories will also act as a positive factor for the red metal prices today.
• European stocks trade on a mixed note ahead of US economic data.
European markets erased its earlier losses and are trading higher today on the back of favorable economic data from Germany. Economic data from Euro Zone showed that German Ifo Business Climate index rose to 109.8-mark in March from the previous level of 109.7 in February. Although, in the earlier part of trading European markets were on a mixed note on account of news from Spain and Italy. Asian markets traded lower and US stocks futures are trading in a positive territory.
Spot gold prices witnessed a see-saw movement in today’s trading session and is currently trading slightly lower by 0.1 percent at $1661/oz till 4.30 pm IST. Strength in the US Dollar Index (DX) exerted downside pressure on gold prices. But, positive sentiments in the Euro markets later gave strength to gold prices. The yellow metal touched an intra-day low of $1655/oz till 4.30 pm IST today. On the MCX, Gold gained around 0.3 percent on account of a weaker Rupee and hit an intra-day high of Rs28,221/10 gms till 4.30 pm IST.
Spot silver prices traded slightly higher by 0.1 percent today till 4.30pm IST and touched an intra-day high of $32.40/oz. However, sharp gains were capped taking cues from a stronger dollar and mixed movement in the base metals pack. MCX Silver May contract, rose almost 0.2 percent and touched an intra-day high of Rs 57,370/kg till 4.30 pm IST today.
The base metals complex delivered a mixed note on the LME today, with zinc, lead and aluminium trading in the red while copper and nickel are trading in a green. The German Business Climate index provided a respite to copper prices.
Lead is a top loser during the session, as the metal declined by more than 1 percent on LME and around 0.2 percent on MCX till 4.30 pm IST. Lead inventories rose almost 1 percent to 376,175 tonnes on the LME warehouses today. This coupled with dollar strength acted as a dampener for lead prices.
Nymex crude oil prices are hovering around $107/bbl, the bounce back from a low of $106.22/bbl is attributed to the positive market sentiments from the Euro Zone along with appreciation in Euro and depreciation in US Dollar Index. Depreciation in Indian Rupee also helped crude prices on MCX to trade higher.
In case of copper, continuously falling LME copper inventories will also act as a positive factor for the red metal prices today.
Crude oil prices are expected to trade with a sideways bias today taking mixed cues from weakness in the US dollar and Saudi Arabia’s statement to offset the supply disruptions from Iran thus easing the supply worries.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click on the attachmentCopper supply crunch positive for prices
Post Your Comment
Recent Comments (0)