Copper prices soared to settle at Rs 611.40 per kg on December 24 as participants trimmed their positions as seen by the open interest. The red metal extended gains after a gap up opening and close at the high point of the day.
The base metal ended the week with a loss of Rs 5.5 or 0.89 percent for the week. Copper prices rose two out of the four trading sessions on the MCX.
Copper prices were getting support from falling inventories at LME and SHFE accredited warehouses and strong demand from China. Stocks at SHFE has fallen to its lowest since 2011.
The US dollar settled modestly lower at 90.25 or down 0.10 percent on Thursday against a basket of six currencies, though up 0.33 percent for the week.
“The strong recovery in manufacturing activity across the United States, Europe, and China are likely to accelerate the upmove in copper, Technically: MCX Copper prices are trading firm above Rs 600 levels and it is showing strong support of 21 Days SMA which place at Rs 596 levels, break out above Rs 615 levels price will move up to Rs 630 levels in the coming week.
MCX iCOMDEX Base Metal Index edged higher 51.02 points, or 0.37 percent to end at 13,714.86.
In the futures market, copper for December delivery touched an intraday high of Rs 611.40 and a low of Rs 599 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 501 and a high of Rs 617.45.
Copper delivery for December surged Rs 9.65, or 1.60 percent, to settle at Rs 611.40 per kg with a business turnover of 305 lots. The same for January contract jumped Rs 1.15, or 0.19 percent to close at Rs 605 per kg with a turnover of 3,978 lots.
The value of December and January’s contracts traded so far is Rs 251.52 crore and Rs 1,563.58 crore, respectively.
The red metal price end with a loss of 0.25 percent quoting at $7,828.75 per tonne in London.
For all commodities-related news, click hereDisclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.