Informist, Tuesday, Feb 27, 2024
By Sandeep Sinha
MUMBAI – Futures of all base metals on the Multi Commodity Exchange of India and the London Metal Exchange gained today because of a slight pullback in the dollar and improved risk appetite. Buying by commodity trading advisers and expectations of a pickup in demand from top consumer China in March and April also supported the positive sentiment.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.1% at 103.73. A weaker greenback makes dollar-denominated commodities such as non-ferrous metals cheaper for holders of other currencies.
Positive economic data from the US also supported non-ferrous metals. Data by the US Census Bureau on Monday showed that new home sales rose 1.5% on month to 661,000 in January.
Investors will take further cues from the US Conference Board consumer confidence survey and US durable goods order data later today.
ALUMINIUM prices rose due to short-covering of positions by traders on the domestic exchange.
COPPER prices rose, taking cues from LME because of a fall of 1,300 tn in stocks at LME-accredited warehouses. Increasing copper demand from the green energy sector in China also supported sentiment.
LEAD contracts traded higher due to a fall of 1,225 tn in in LME inventory, and traders raising their long positions on the MCX.
ZINC outperformed other base metals due to hope of further stimulus support from top consumer China.
At 1750 IST, on the MCX, the March futures contract of:
–Aluminium was at 198.60 rupees a kg, up 0.4%
–Copper was at 726.55 rupees a kg, up 0.2%
–Lead was at 180.15 rupees a kg, up 0.2%
–Zinc was at 215.65 rupees a kg, up 0.5%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 195.50-202.0 rupees
–Copper seen at 722.50-731.0 rupees
–Lead seen at 177.0-183.0 rupees
–Zinc seen at 211.50-220.0 rupees
End
US$1 = 82.90 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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