MCX Copper Tips – Strong Resistance at 458 level, Sell On Rise – Neal Bhai Reports
MCX Copper settled flat 0.09% at 445.55 as pressure seen after LME copper inventories have surged 67 percent over the past two days. The Chinese government has additional monetary policy measures that it can take to support economic growth this year, and will even cut “its own flesh” to help finance large-scale tax cuts, Premier Li Keqiang said.
MCX Gold SL Hit Below 31700 No Buying – Downside Expected Level 31560—31280
China has promised billions of dollars in tax cuts and infrastructure spending to help businesses and protect jobs, as economic momentum is expected to cool further due to softer domestic demand and the trade war with the United States.
The backwardation between the March and April ShFE copper contracts spiked to over 1,000 yuan a tonne, the highest since May 2014, after Li’s comments.
The spread between April and May, previously in a steep backwardation, immediately flipped into a deep contango.
China industrial production grew at the slowest pace in nearly two decades in the first two months of the year, retail sales gains were steady and property investment surged despite a fall in demand, suggesting that the economy is not out of the woods yet.
