Copper futures trade higher at Rs 520.35 per kg on positive global cues

Copper prices jumped to Rs 520.35 per kg on October 7 as participants increased their long positions. The base metal traded higher in evening trade as the dollar pared its gains and the equity market rebounded.

The dollar index traded 0.11 percent lower at 93.63 levels.

Copper prices gained on anticipation of a fall in supply due to threat of a looming strike in Chile’s mines. However, higher stocks at London Metal Exchange (LME) accredited warehouses may cap the upside.

Neha Qureshi, Technical Research Analyst at Reliance Securities, said in case copper trades below $6,580-$6,650 per ounce, it will continue to trend lower. He sees support for copper at $6,440-$6,370 levels. In the domestic market, he sees support and resistance for copper at Rs 508-505 and Rs 513-518, respectively.

MCX iCOMDEX Base Metal Index rose 116.13 points, or 1 percent, to 11,695.73 at 18:27 hours.

In the futures market, copper for October delivery touched an intraday high of Rs 521 and a low of Rs 508.10 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 7.7, or 1.5 percent, to Rs 520.35 per kg at 18:28 hours on a business turnover of 4,975 lots. The same for November delivery edged higher by Rs 7.85, or 1.54 percent, to Rs 518 per kg on a turnover of 320 lots.

The value of October and November’s contracts traded so far is Rs 2,216.65 crore and Rs 27.01 crore, respectively.

At 13:01 (GMT), the red metal price was trading up 1.92 percent at $6,662 per tonne in London.