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Monday, December 6, 2021

MCX Copper under fresh selling; Support seen at 429.9

MCX Nickel may trade between 955.3-984.5 levels

MCX Aluminium under fresh selling; Support seen at 142.2

MCX Mentha Oil likely to trade in a range of 1430.4-1511.4

Zinc market under fresh selling; Support seen at 178.8

Natural Gas market under fresh selling; Resistance seen at 194.3

Technically Copper market is under fresh selling and prices are getting support at 429.9 and below same could see a test of 426.7 levels and resistance is now likely to be seen at 437.5, a move above could see prices testing 441.9.

Copper on MCX settled down 0.82% at 433.10 on fresh selling tracking weakness from LME Copper which was down 0.9 percent at $6,332 a tonne slumped to their weakest level in a year after the Trump administration said it would slap 10 percent tariffs on an extra $200 billion worth of Chinese imports.

US President Donald Trump’s latest tariff threat escalates an already deepening trade war between the world’s two biggest economies, fuelling risk aversion across assets from commodities to equities. Three-month copper on the London Metal Exchange dropped as much as 3.8 percent to $6,092.50 a tonne, its lowest since July 25 last year. It was down 2.7 percent at $6,158.50.

Concerned seen after US officials released a list of thousands of Chinese imports the administration wants to hit with the tariffs, including hundreds of food products as well as tobacco, chemicals, coal, steel and aluminium. Last week, Washington imposed 25 percent tariffs on $34 billion of Chinese imports, and Beijing responded immediately with matching tariffs on the same amount of U.S. exports to China.

Last night the US dollar index gained 0.04% to close at 94.09 as the euro weakened. The US President Donald Trump’s push for allies of the NATO to increase military spending added to market worries. Base metals fell for the most part, except for nickel.

LME zinc led the losses and closed over 2.2% lower. Now a day ahead traders are watching key factors for today include the US weekly crude oil inventories, its PPI in June and wholesale inventories data in May.

Trading Ideas:
–Copper trading range for the day is 426.7-441.9.
–Copper prices dropped amid ongoing investor anxieties over the prospect of a trade war between the U.S. and China.
–China’s foreign exchange reserves rose $1.51 billion in June to $3.11 trillion, compared with the expected $3.1 trillion, central bank data showed.
–Labour negotiations at BHP Billiton Plc’s Escondida copper mine in Chile, are entering the final three weeks before a 30-month contract expires at the end of July.

Courtesy: Kedia Commodities 

Source: Commodityonline.com

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