MCX Mentha Oil likely to trade in a range of 1672.1-1715.7
MCX Aluminium may trade between 134.3-137.3 levels
MCX Nickel may move in a range of 747.3-772.5
MCX Zinc likely to move in a range of 172.2-185
MCX Natural Gas may trade between 289.7-333.5 levels
Technically Copper market is getting support at 428 and below same could see a test of 421.1 level, And resistance is now likely to be seen at 438.7, a move above could see prices testing 442.5.
Copper on MCX settled up 2.37% at 434.85 rose tracking equities higher after investors saw comments from the U.S. Federal Reserve chair as a sign the central bank’s interest rate hike cycle is drawing to a close.
Jerome Powell said at a lunch on Wednesday that the Fed’s policy rate is now “just below” estimates of a level that neither brakes nor boosts a healthy U.S. economy. Higher interest rates mean higher borrowing costs, which can reduce economic activity and consumption, and see capital flow into assets with higher yields than commodities.
While other industrial metals moved in tight ranges amid uncertainty over the direction of the U.S.-China trade war. China is hoping for a deal to ease a damaging trade war with the United States, Beijing’s ambassador to Washington said on Tuesday, while warning of dire consequences if U.S. hard-liners try to separate the world’s two largest economies.
Trump said in a Washington Post interview that he was “not even a little bit happy” with his selection of Powell to succeed Janet Yellen at the helm of the central bank, and that the central bank’s policies were hurting the economy.
Investors were also focused on the G20 summit in Buenos Aires on Friday and Saturday, where Trump and China President Xi Jinping are scheduled to discuss trade issues.
Now day ahead economic data slated for release today include the US weekly jobless claims, its PCE price index, personal spending, and existing home sales for October, Germany’s unemployment rate and CPI for November, as well as the eurozone’s business climate Index and consumer sentiment index for November.
Trading Ideas:
–Copper trading range for the day is 421.1-442.5.
–Copper prices gained after investors saw comments from the U.S. Federal Reserve chair as a sign the central bank’s interest rate hike cycle is drawing to a close.
–U.S. President Trump is open to reach a deal on trade with Chinese leader Xi Jinping but is ready to hike tariffs on Chinese goods if there is no breakthrough.
–Tight supplies, traders’ and downstream demand for cargoes with November’s invoices kept spot copper premiums at 70-130 yuan/mt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
