Copper futures slide 0.37% to Rs 523.65 per kg in evening trade

Copper prices slid marginally to Rs 523.65 per kg on September 10 as participants increased their short positions.

The European Central Bank left policy unchanged as the economic recovery is losing momentum and a strong euro is dampening inflationary expectations.

The number of Americans filing claims for unemployment benefits stood at 884,000 for the week-ended September 5, the US Labour Department said.

The fall in copper inventory at warehouses accredited with the London Metal Exchange (LME) and tightness in the physical market may cap the downside.

In the futures market, copper for September delivery touched an intraday high of Rs 524.80 and a low of Rs 516.70 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 486 and a high of Rs 531.

Copper futures for September delivery slipped Rs 1.95, or 0.37 percent, to Rs 523.65 per kg at 19:19 hours on a business turnover of 4,426 lots. The same for October delivery inched lower by 0.57 percent to Rs 519.10 per kg on a turnover of 276 lots.

The value of September and October’s contracts traded so far is Rs 2,136.49 crore and Rs 35.62 crore, respectively.

"Copper is expected to trade negatively, with resistance at Rs 522.50 and Rs 520.50 levels," according to Motilal Oswal. The brokerage advised its clients to sell on rallies, targeting lower support in the Rs 517-515 zone.

At 13:51 (GMT), the red metal was down 0.13 percent at $6,751 per tonne in London.