Gold Silver Reports — Technically Copper market is under short covering as market has witnessed drop in open interest by 1.99% to settled at 15928 while prices up 1.3 rupees.
Now MCX Copper is getting support at 383.8 and below same could see a test of 380.6 level, And resistance is now likely to be seen at 389.5, a move above could see prices testing 392.
Copper on MCX settled up 0.34% at 386.8 bolstered by a weaker dollar and continuing supply problems, including stoppages at the world’s two biggest mines. Prices last week fell to their lowest level since Jan. 10 at $5,652 a tonne.
The Fed raised interest rates on Wednesday for the second time in three months, a move spurred by steady economic growth, strong job gains and confidence that inflation is rising to the central bank’s target. China’s Premier Li Keqiang reassured investors on Wednesday that the world’s second-largest economy and top metals consumer was strong and not at risk of a hard landing following recent buoyant economic data.
Escondida plans to restart operations after striking workers again rejected an invitation to return to negotiations. A strike at Peru’s top copper mine, Cerro Verde, may end next week if the labour ministry declares it illegal, the head of the union said on Tuesday.
Chile-based Antofagasta said copper prices will continue rising this year after an increase of 17% in 2016. Antofagasta expects deficit in copper supply in 2017, so copper prices will not drop to a low seen in 2016. — Neal Bhai Reports
