Informist, Monday, Sep 12, 2022
By Sandeep Sinha
MUMBAI – Futures contracts of all the base metals traded in the green on the Multi Commodity Exchange of India and the London Metal Exchange on improved risk appetite, a rally in equity markets, and a correction in the US dollar.
* The dollar index, which measures the strength of the greenback against a basket of six major currencies, fell 0.5% to 108.19 on profit booking. A weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies.
* The Chinese market was shut today on account of Mid-Autumn Festival.
* “It was a subtle improvement in onshore sentiment and particularly towards the property sector coupled with the pause in the dollar rally which sparked the metals price gains into the latter half of last week,” Al Munro at broker Marex said in a note. “Prices rally in China’s absence thanks to dollar weakness this morning, as well as systematic buying, progresses.”
* Investors will take cues from US consumer price index for August, due on Tuesday, which may influence the quantum of the Federal Reserve’s interest rate hike.
* ALUMINIUM prices gained due to short-covering of positions by traders on the domestic bourse and a fall of 900 tn in LME stocks.
* COPPER prices rose as market players increased their long positions on the MCX. Decline in LME inventory by 25 tn and dollar weakness also lent support to the prices.
* At 1700 IST, on the MCX, the September futures contract of:
–Aluminium was at 201.20 rupees, up 0.5%
–Copper was at 659.75 rupees a kg, up 0.7%
–Lead was at 178.70 rupees a kg, up 0.7%
–Zinc was at 286.95 rupees a kg, up 0.6%
* Outlook for the evening session on MCX:
–Aluminium contract seen at 197.95-203.20 rupees a kg
–Copper seen at 650.30-662.35 rupees a kg
–Lead seen at 176.65-178.10 rupees a kg
–Zinc seen at 281.10–290.50 rupees a kg
US$1 = 79.52 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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