Informist, Monday, May 30, 2022
By Sandeep Sinha
MUMBAI – Base metals futures rose today on the Multi Commodity Exchange of India and the London Metal Exchange due to improving risk appetite and weakness in dollar.
* “Metals prices are presumably finding support from the increased risk appetite among market participants, which is also reflected in significantly rising stock markets,” Commerzbank said in a report.
* The dollar index touched a five-week low of 101.38 today amid expectation that the US Federal Reserve may pause rate hikes in the second half of the year and reduce safe-haven buying. A weak greenback makes dollar-denominated commodities cheaper for holders of other currencies.
* The trading volume is likely to be thin as the US market is closed today for Memorial Day.
* A continued decline in inventory at LME-accredited warehouses and Chinese authorities permitting industrial activity to resume in Shanghai from Wednesday also aided market sentiment.
* ALUMINIUM rose as market players created fresh long positions on the MCX and due to a fall in LME stocks by 5,375 tn.
* COPPER contract was up on hopes that the easing of restrictions in China would revive demand and also due to a weaker dollar. Traders increasing long positions on the domestic bourse and a decline in LME inventory by 1,525 tn also supported the prices.
* At 1725 IST, on the MCX, the June futures contract of:
–Aluminium was at 243.60 rupees, up 0.9%
–Copper was at 781.55 rupees a kg, up 0.6%
—LEAD was at 185.0 rupees a kg, up 1%
—ZINC was at 335.95 rupees a kg, up 2.3%
* Outlook for the evening session on MCX:
–Aluminium contract seen at 240.0-245.0 rupees per kg
–Copper seen at 773.0-787.0 rupees per kg
–Lead seen at 180.0-189.0 rupees per kg
–Zinc seen at 330.75–340.0 rupees per kg
US$1 = 77.54 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Aditya Sakorkar
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