Copper prices extended gains and traded at the high point of the day as investors take advantage of the lower price to build a fresh position. The non-ferrous metal had crashed to a five-week low yesterday as strong US jobs data fuelled concerns that monetary policy could tighter.
Copper delivery for June gained Rs 8, or 1.09 percent, to Rs 742.15 per kg at 18:48 hours with a business turnover of 4,926 lots. The same for the July contract rose by Rs 8.55, or 1.14 percent to Rs 747.20 per kg with a turnover of 360 lots.
The value of June and July’s contracts traded so far is Rs 2,425.30 crore and Rs 60.41 crore, respectively.
MCX METLDEX increased 140 points, or 0.94 percent, at 15,050 at 18:52. The index tracks the real-time performance of key base metals.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “We may expect bearish momentum to continue today as well where Rs 725-720 levels may be tested. LME supplies for copper are in marginal deficit for the day which may cap the downwards movement.”
Yangshan copper import premiums falling to $28.50/tonne, the lowest since at least 2012, suggesting that imported demand for the metal remained weak.
The US dollar dropped to 90.08, down 0.47 percent in the evening session against the rival currencies.
Technicals
The non-ferrous metal has been trading higher than 50, 100 and 200 days' moving averages but lower than the 5 and 20 days’ moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 45.94, which indicates a bearish movement in prices.
At 13:30 (GMT), the reddish-brown metal price soared 1.52 percent to quote at $9,970.25 per tonne in London.
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