Copper Pares Some Losses, Decisive Move Will Come After Fed Meet

Copper.....

Copper pared some losses by the end of ring trades on LME but still lacked he confidence to end in green. The data from US soothed the nerves and helped in recovery. It is the Federal Reserve meet that is watched more keenly by the speculators. In economic reports, business conditions index rose to 7.84 in June from -1.43 in May, beating consensus forecasts of an increase to zero.

Meanwhile, Dollar remain whopping between losses and gains against the Euro. The greenback ended at 1.3361 per Euro, down 0.11 percent. The clarification from Ben Bernanke on the bond purchases might give some strength to the US Dollar. Rupee remained struggling against the Dollar and settled near all time lows at 57.85 against the Dollar.

One concern that has mitigated in recent times is the supply of Copper. Earlier, it was said that the Grasberg mine of Freeport will hit the supplies. However, restart of Sterlite industries Tuticorin Smelter will address that issue. The smelter was shut down from March 2013 from emission concerns.

Inventories data showed a rise of 11400 tonnes in LME Copper warehouses. Stocks have reached 629475 tonnes. Inventories have gained by more than 90 percent in 2013.

LME Copper three month prices closed at $ 7065 per tonne, down $ 20 per tonne. A decisive move will come in the metal only after Federal Reserve Committee meet. MCX Copper settled at Rs 409.45 per kg, up 0.37 percent. The metal tested a high of Rs 412.2 per kg and a low of Rs 407.1 per kg. Resistance for the contract is at Rs 414 per kg while support is at Rs 408 per kg.

Source by Commodity Insights