Copper futures trade firm at Rs 511.15/kg on a weaker dollar

Copper prices rose to Rs 511.15 per kg on October 6 as participants increased their long positions, tracking weakness in the dollar. The Dollar Index trades lower at 93.50 levels down 0.05 percent.

Copper traded firm tracking lower inventory at accredited warehouses of the Shanghai Futures Exchange (SHFE), decline in copper production at Chile and threat of strike at a mine in Chile. However, higher stocks at accredited warehouses at the London Metal Exchange (LME) and easing tightness in physical market may cap the upside.

Neha Qureshi, Technical Research Analyst at Reliance Securities, said, copper could trade in a $6,498-6,580 range on LME. He expects the metal to trade sideways with a marginal downside as long as support holds at Rs 508-505 and resistance at Rs 513-518 levels.

MCX iCOMDEX Base Metal Index rose 89.13 points, or 0.78 percent, at 11,533.92 at 18:41 hours.

In the futures market, copper for October delivery touched an intraday high of Rs 513.70 and a low of Rs 509.60 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 494.80 and a high of Rs 532.60.

Copper futures for October delivery gained Rs 1.35, or 0.26 percent, to Rs 511.15 per kg at 18:43 hours on a business turnover of 4,518 lots. The same for November delivery edged up Rs 0.9, or 0.18 percent, to Rs 508.35 per kg on a turnover of 268 lots.

The value of October and November’s contracts traded so far is Rs 1,311.33 crore and Rs 32.21 crore, respectively.

At 13:15 (GMT), the red metal price was trading flat at $6,524.25 per tonne in London.