MCX Zinc may trade in range between 175.9-181.5
MCX Natural Gas may trade in a range between 305.3-336.3
MCX Nickel under short covering; Resistance seen at 771.4
MCX Aluminium likely to move in a range of 134-136.4
MCX Mentha Oil under long liquidation
Technically Copper market is getting support at 423.8 and below same could see a test of 421 levels and resistance is now likely to be seen at 431.2, a move above could see prices testing 435.8.
Copper on MCX settled down -1.91% at 426.55 as pressure seen ahead of expiry and Rupee gained while earlier in the day prices gained tracking a rise in equities after investors took comments from the U.S. Federal Reserve chair as a sign the central bank’s interest rate hike cycle is drawing to a close.
Copper prices were also lifted on worries over supply as smelter in Indonesia declared force majeure on some deliveries to customers. Fed Chair Jerome Powell said on Wednesday that the bank’s policy rate was 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. Trade uncertainty continues to weigh ahead of a meeting between U.S. President Donald Trump and Chinese counterpart Xi Jinping at the G20 summit in Argentina.
Last night the US dollar recovered but remained under 97 as concerns before the G20 meeting prompted investors to buy back the currency. Comments by the Federal Reserve chief were seen as a signal that a rising trend in interest rates may end, and this also supported the greenback.
Now a day ahead economic data slated for release today include China’s official manufacturing purchasing managers index (PMI), Germany’s retail sales for October, and the eurozone’s CPI for November. The G20 summit begins today in Argentina.
Trading Ideas:
–Copper trading range for the day is 421-435.8.
–Copper dropped on Rupee firmness after prices seen supported on worries over supply as smelter in Indonesia declared force majeure on some deliveries to customers.
–Trade uncertainty continues to weigh ahead of a meeting between U.S. President Donald Trump and Chinese counterpart Xi Jinping at the G20 summit in Argentina.
–BHP’s Spence copper mine was operating normally again following a union strike announced, the company said.
Courtesy: Kedia Commodities
Source: Commodityonline.com
