Informist, Thursday, May 25, 2023
By Sandeep Sinha
MUMBAI – Future contracts of most base metals fell on the Multi Commodity Exchange of India and the London Metal Exchange because of strength in the dollar ahead of US GDP data release.
The dollar index rose to an eight-week high of 104.16 today against a basket of major currencies on safe-haven demand. A firm greenback makes dollar-denominated commodities expensive for holders of other currencies.
Also, uncertainty around US debt ceiling negotiations weighed on the sentiment for base metals. Fitch Ratings on Wednesday placed US’ ‘AAA’ long-term foreign-currency issuer default rating on negative watch.
For further cues, investors look forward to the release of the second reading of the US Jan-Mar GDP and initial jobless claims data later today.
ALUMINIUM prices fell as traders trimmed their positions on the domestic exchange.
COPPER prices rose due to short-covering after a sharp fall in the past few sessions.
LEAD contracts slipped as traders continued liquidating their long positions on the MCX.
ZINC contracts fell and touched a fresh 52-week low on the domestic exchange and LME due to weak demand and increasing production.
* At 1720 IST, on the MCX, the May futures contract of:
–Aluminium was at 207.35 rupees a kg, down 0.1%
–Copper was at 697.40 rupees a kg, up 0.6%
–Lead was at 180.60 rupees a kg, down 0.3%
–Zinc was at 203.0 rupees a kg, down 2%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 204.0-212.0 rupees
–Copper seen at 690.0-712.0 rupees
–Lead seen at 180.0-184.0 rupees
–Zinc seen at 200.0–209.0 rupees
End
US$1 = 82.74 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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