Zinc market under short covering; Support seen at 175.3
MCX Crude Oil likely to trade in a range between 4528-4872
MCX Silver likely to trade in a range between 37660-38330
Gold market under fresh selling; Support seen at 29550
NCDEX Turmeric under fresh selling; resistance seen at 7312
Technically MCX Copper is getting support at 413.3 and below same could see a test of 409.6 levels and resistance is now likely to be seen at 419.6, a move above could see prices testing 422.2.
Copper on MCX settled up 0.49% at 416.85 gained on short covering while prices moved in bigger range tracking LME Copper prices on the London Metal Exchange which consolidated during yesterday’s session, unperturbed by news of strike action at BHP’s Escondida mine in Chile, the world’s largest copper mine.
Dipping marginally over the morning session, copper’s price has fallen just under 3% from its weekly high of 432.40 per tonne on July 31. News of strike action at Escondida has had little effect on prices, with copper ticking 0.1% lower, despite last year’s 44-day walkout at the mine sending prices soaring 9% higher over a one-month period.
“BHP’s final offer included an approximately $18,000 signing bonus, and a 1.5% boost to salaries, with increases for inflation, but the union had asked for a signing bonus around twice that offered by the company, and had requested a salary increase of 5%, leaving a wide gap between the two parties ahead of the vote.
Last night the dollar index rose past 95 on Thursday as trade tension between the US and China grew. LME base metals closed mixed on Thursday. Zinc jumped over 1%, copper and lead inched up while nickel edged down 0.3%, aluminium fell close to 0.7%.
Zinc gained 0.45%, copper and aluminium nudged up 0.14% while lead slipped 0.88% and nickel dropped over 1%. Now day ahead key factors to watch today will be China Caixin services purchasing managers’ index (PMI), eurozone retail sales growth in June, US trade balance in June, nonfarm payrolls report and ISM services PMI in July.
Trading Ideas:
–Copper trading range for the day is 409.6-422.2.
–Copper prices seen supported by potential strikes at Escondida and low levels of LME and SHFE inventory
–Fears that the trade row between US and China could hit demand for industrial metals.
–Workers at BHP Billiton Ltd’s Escondida mine in Chile, have voted to reject a company wage offer and go on strike.
Courtesy: Kedia Commodities
Source: Commodityonline.com
