MCX Gold under fresh buying; Support seen at 31380
MCX Silver may trade between 38471-39761 levels
MCX Crude Oil under fresh buying; Resistance seen at 5601
MCX Natural Gas under long liquidation; Support seen at 229.5
MCX Zinc under Fresh buying; Support seen at 195
Technically Copper market is under fresh selling as market has witnessed gain in open interest by 2.87% to settled at 11122 while prices down 0.65 rupees.
Now MCX Copper is getting support at 452.4 and below same could see a test of 448.3 level, And resistance is now likely to be seen at 460.2, a move above could see prices testing 463.9.
Copper on MCX settled down 0.14% at 456.55 as pressure seen amid rising U.S. interest rates and a slowdown in China is weighing, submerging signals pointing to potential shortages. Pressure seen with a barrage of strong economic data from the United States as well as hawkish rhetoric from the US Federal Reserve continuing to prop up the dollar.
China’s overseas expansion will spread over land that is home to more than half the world’s population, potentially boosting copper use by 1.6-million tons, or roughly 7% of annual demand, major miner BHP said.
It said China’s overseas expansion plan covered 115 partners across Eurasia, parts of Africa, Latin American and Oceania, up from 68 countries or regions it cited in a previous blog post in September 2017.
Concern about nearby shortages on the LME market have created a premium for the cash over the three-month contracts in recent days. The premium, at around $6 a tonne, rose above $16 a tonne in September from a discount of more than $40 in August.
Speculators pile on bearish positions and investors flee from the metals market during tit-for-tat trade volleys, signs of metals shortfalls are building.
Statements from US Federal Reserve Chair Jerome Powell that implied more US interest rate increases were coming, strengthened the dollar and put downward pressure on base metals prices. There is more copper stock cancelled in LME warehouses now than available on-warrant – with 56% of stock booked for removal.
Trading Ideas:
–Copper trading range for the day is 448.3-463.9.
–Copper dropped as pressure seen amid rising U.S. interest rates and a slowdown in China is weighing, submerging signals pointing to potential shortages.
–China’s overseas expansion will spread over land that is home to more than half the world’s population, potentially boosting copper use by 1.6-million tons.
–Concern about nearby shortages on the LME market have created a premium for the cash over the three-month contracts in recent days.
Courtesy: Kedia Commodities
Source: Commodityonline.com
