MCX Natural Gas may trade in a range between 198.3-203.5
MCX Crude Oil may trade in a range between 4753-4895
Silver market under long liquidation; Support seen at 36965
Gold market under short covering; Support seen at 29946
MCX Cotton under short covering
Copper on MCX settled up 1.14% at 423.25 as support seen after LME Copper gained by 0.7 percent at $6,147 a tonne, having touched a session high of $6,167. It is up about six percent since crashing to a 14-month low of $5,773 a tonne on Aug. 15 as trade war fears ease, dollar slips.
LME copper traded robustly overnight as it opened above the 20-day moving average and jumped to an intraday high of $6,167/mt. It is forecasted to test resistance at $6,200/mt as market sentiment on the macroeconomy improved.
Copper prices are likely to continue their robust trend in the short run, but there will be uncertainty in the medium- to long-term. Last night a strong Conference Board (CB) Consumer Confidence index for August lowered the US dollar index by 0.07%.
Most LME and SHFE base metals gained. LME aluminium jumped 2.4%, nickel rose 1.6%, copper increased over 1%, while SHFE nickel surged 1.5%, aluminium went up 1.2%, and copper closed 0.78% higher. While US wholesale inventories gained 0.7% in July and stocks at retailers increased 0.4%, suggesting inventories could bolster gross domestic product this quarter.
With another fairly light week on the economic calendar investors will continue to monitor developments on the U.S. political front after a bruising week for President Donald Trump, following the criminal conviction of two associates. Today investors will get the chance to parse a revision to second quarter U.S. GDP. Technically market is under short covering as market has witnessed drop in open interest by -7.77% to settled at 22372 while prices up 4.75 rupees, now Copper is getting support at 418.6 and below same could see a test of 414 level, And resistance is now likely to be seen at 426.4, a move above could see prices testing 429.6.
–Copper trading range for the day is 414-429.6.
–Copper prices rose supported by easing global trade-war worries in the wake of United States’ bilateral deal with Mexico, while a weaker dollar also lifted sentiment.
–U.S. and Chinese officials ended two days of talks last week with no major breakthrough as their trade war escalated with activation of another round of duelling tariffs.
–US. Commerce Department said it had made a preliminary determination that imports of certain steel wheels from China were subsidized at rates.
Courtesy: Kedia Commodities