Informist, Monday, Feb 5, 2024
By Sandeep Sinha
MUMBAI – Futures contracts of all base metals traded lower today on the Multi Commodity Exchange of India, tracking those on the London Metal Exchange, owing to the strength in the dollar and due to a weak risk appetite.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.1% at 104.2 amid dimmed hopes of a US Federal Reserve rate cut in March. A firm greenback makes commodities priced in the dollar expensive for holders of other currencies.
The sentiment was also weighed down by rising inventories at the Shanghai Futures Exchange warehouses last week. Stocks of copper rose 18,245 tn to 68,777 tn on Friday, those of zinc increased by 5,235 tn to 27,882 tn, aluminium was up by 4,628 tn to 106,165 tn and lead stocks rose by 552 tn to 37,252 tn.
The week-long Chinese Lunar New Year holiday starting this Friday, also, kept traders away from taking fresh positions in base metals. Investors will take further cues from US trade balance data and Institute of Supply Management services purchasing managers’ index data later in the week.
ALUMINIUM prices fell due to concerns over demand in top consumer China. Profit-taking by traders on the domestic exchange also hurt prices.
COPPER prices slipped due to a firm dollar and traders increasing their short positions on the MCX.
At 1630 IST, on the MCX, the February futures contract of:
–Aluminium was at 200.0 rupees a kg, down 0.8%
–Copper was at 719.20 rupees a kg, down 0.4%
–LEAD was at 181.40 rupees a kg, down 0.1%
–ZINC was at 217.0 rupees a kg, down 1%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 198.0-203.0 rupees
–Copper seen at 714.80-730.40 rupees
–Lead seen at 180.0-183.10 rupees
–Zinc seen at 215.30-223.40 rupees
End
US$1 = 83.06 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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