Base Metals - Commodity Snippet - Dec 2, 2020 - Reliance Securities
(Time Zone: Arizona, USA)
LME copper prices extended gains on Tuesday, hitting their highest since 2013 supported by upbeat data from China and weak U.S. Dollar. Other metals ended higher on Tuesday.
The dollar fell on Tuesday to its lowest level in more than 2-1/2 years, as investors' appetite for risk increased on prospects of further fiscal stimulus from the United States as well as expectations of a solid global recovery.
Most metals recovered from the lows of the pandemic as governments pumped money into markets and speculators bought into the rally.
Speculators' net long in LME copper is equal to 24% of open contacts, the highest since November 2017.
Prices also found support amid talks of further stimulus from the U.S. A bipartisan group of U.S. senators and members of the House of Representatives on Tuesday proposed a $908 billion COVID-19 relief bill.
Copper on MCX rose on Tuesday, tracking the LME prices.
International and Domestic Outlook
Copper and other metals on LME hasstarted marginally lower this Wednesday morning in Asian trade amid profit booking.
Technically, LME Copper made a 52 week high at $7742.25 levels where it is trading below $7700 levels the support zone holds at $7580-$7515 levels above which will continue its upside momentum up to $7690-$7720 levels.
Domestic copper could start marginally weak this Tuesday morning, tracking a weak start in the overseas prices.
Technically, MCX Copper December is trading on flat note after hitting All-time high levels of 591.90 levels. However it has given mild correction from that level indicating a sideways momentum in the range of 582-589 levels in coming sessions.