Informist, Friday, May 19, 2023
By Sandeep Sinha
MUMBAI – The futures contracts of all base metals rose on the Multi Commodity Exchange of India and London Metal Exchange as the dollar weakened ahead of Federal Reserve Chief Jerome Powell’s speech later in the day.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.2% at 103.32. A weaker greenback makes dollar-denominated commodities such as non-ferrous metals cheaper for holders of other currencies.
The positive cues in non-ferrous metals were also supported by increased risk appetite on easing debt-ceiling concerns and bargain-buying in the physical market.
“Amid the speculative and discretionary selling across the majority this week we have seen some merchant and other consumer buying,” Al Munro at broker Marex said in a note. Commodities benefitted today from the dollar weakness, added to which signs of some short covering onshore particularly on copper.
ALUMINIUM prices rose due to a fall in stocks by 1,350 tn at LME-accredited warehouses. The short-covering of positions by traders on the domestic exchange also aided the prices.
COPPER prices gained on easing fears of US debt default and weakness in the dollar. However, the red metal was on track to end with a loss for the third straight week on the MCX.
LEAD contracts rose as traders increased their long positions on the domestic bourse.
ZINC contracts were up because of short-covering after a sharp fall in the past few sessions.
* At 1745 IST, on the MCX, the May futures contract of:
–Aluminium was at 210.20 rupees a kg, up 0.7%
–Copper was at 725.90 rupees a kg, up 1%
–Lead was at 184.45 rupees a kg, up 0.5%
–Zinc was at 226.20 rupees a kg, up 1.3%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 206.50-212.50 rupees
–Copper seen at 715.0-732.0 rupees
–Lead seen at 181.50-186.50 rupees
–Zinc seen at 222.50–229.0 rupees
End
US$1 = 82.66 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Manisha Baxla
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