Base Metals: Yesterday, Copper futures closed up on the London Metal Exchange, but hit an almost four-week low during the session on poor economic data out of China. Nickel got lift from mining strike adding more supply concern while Copper prices have found support from expectations that weak Chinese economic data will spur further monetary easing and stimulus measures, while tin slips on worries about an oversupplied market. Despite poor econ numbers from China metals boosted on LME as market fuelled speculation policymakers in Beijing will have to do more to jumpstart the economy raising expectations of more stimuli soon. US IP and manufacturing numbers also remained bearish which added weaknesses in dollar. Aluminum increased on rising premium and oil rally. One can go long in copper, aluminum and lead for near term.
Precious Metals: Gold prices inched up today with tension over Greece a centerpiece for investors as the country and its creditors remain at an impasse. In the initial trading, Gold prices inched up with tension over Greece a centerpiece for investors as the country and its creditors remain at an impasse. Gold futures for June delivery rose 0.16% to $1,203.20 a troy ounce and silver for May delivery gained 0.19% to 16.310 a troy ounce. ECB’s sticking view with bond buying to stimulate growth remained positive for bullions. Holdings in gold-backed exchange-traded products increased for the first time in three days, rising 1.1 metric tons to 1,618.7 tons. Gold major support is at Rs.26400 and silver is at Rs.35800.
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