Informist, Monday, Dec 18, 2023
By J. Navya Sruthi
MUMBAI – Futures contracts of most base metals were up on the Multi Commodity Exchange today, tracking the London Metal Exchange, because of a weak dollar. A weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.1% at 102.51.
Investors will take further cues from US core personal consumer price index, which is the US Federal Reserve’s preferred inflation gauge later this week. The US core personal consumption expenditure index report is due on Friday. In a Reuters poll, analysts forecast core personal consumption expenditure to rise 0.2% last month, with the annual inflation rate slowing to its lowest since mid-2021 at 3.4%.
COPPER prices were lower amid market uncertainties about the US Federal Reserve’s interest rate path, Dow Jones wire reported. “We’ll see if the macro optimism extends into this week,” Dow Jones wire reported quoting Peak Trading Research in a note.
However, the upside in non-ferrous metals was restricted by weak economic data from Germany. Germany’s Institute for Economic Research Business Climate Index fell to 86.4 in December from 87.2 in November. The country is one of biggest users of base metals.
At 1906 IST, on the MCX, the December futures contract of:
–ALUMINIUM was at 204.30 rupees a kg, up 0.6%
–Copper was at 723.65 rupees a kg, down 0.3%
–LEAD was at 184.40 rupees a kg, up 0.2%
–ZINC was at 224.05 rupees a kg, up 0.4%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 198.10-209.50 rupees
–Copper seen at 711.20-730.0 rupees
–Lead seen at 182.0-186.50 rupees
–Zinc seen at 220.60-225.70 rupees
End
US$1 = 83.06 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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