Copper which is often used as a hedge against inflation saw a decline in the appeal as the industrial demand for the commodity slowed. The problems in US have been increasing day by day and this has lead to lack of demand from traders. Copper prices fell 2 percent on Friday as a flurry of economic data from the United States still pointed to a severe slowdown and investors worried about metals demand.
After the Federal Reserve stated that it was committed to take out the economy from slump, Dollar saw gains against the major currencies. The dollar experienced strength versus other majors. The greenback climbed to a three-week high against the British pound and also moved to a five-week best against the euro but returned its gains against the European currency.
Copper prices were on its all time highs on 2nd July 2008 when it pulled back. Participants have seen a correction of more than 10% in the prices since than, with the same closing the trading at $ 7900 per tonne on LME.
Inventories data piling up and this is pressurizing the prices. During the month of July inventories have jumped up by 22300 tonnes to 144650 tonnes a rise of 18%. Total cancelled warrants were 14975 tonnes on 31st July 2008 a rise of 131% in a month. Total cancelled warrants at the start of the month were 6475 tonnes.
MCX Copper is now trading at Rs 335 per kg almost unchanged from the last day. Supports for the contract are at 327 levels, Resistances for the contract are at 336 levels. The prices were hovering in the range of Rs 387 per kg on 2nd July from where it has dropped down 14 % so far.
Later Friday morning, the Institute for Supply Management released its report on activity in the manufacturing sector in the month of July, showing no change in business activity compared to the previous month. The ISM said that its purchasing manager’s index edged down to 50.0 in July from 50.2 in June, with 50 the reading that separates expansion and contraction. Economists had expected the index to fall to a reading of 49.2.
After the Federal Reserve stated that it was committed to take out the economy from slump, Dollar saw gains against the major currencies. The dollar experienced strength versus other majors. The greenback climbed to a three-week high against the British pound and also moved to a five-week best against the euro but returned its gains against the European currency.
Copper prices were on its all time highs on 2nd July 2008 when it pulled back. Participants have seen a correction of more than 10% in the prices since than, with the same closing the trading at $ 7900 per tonne on LME.
Inventories data piling up and this is pressurizing the prices. During the month of July inventories have jumped up by 22300 tonnes to 144650 tonnes a rise of 18%. Total cancelled warrants were 14975 tonnes on 31st July 2008 a rise of 131% in a month. Total cancelled warrants at the start of the month were 6475 tonnes.
MCX Copper is now trading at Rs 335 per kg almost unchanged from the last day. Supports for the contract are at 327 levels, Resistances for the contract are at 336 levels. The prices were hovering in the range of Rs 387 per kg on 2nd July from where it has dropped down 14 % so far.
Later Friday morning, the Institute for Supply Management released its report on activity in the manufacturing sector in the month of July, showing no change in business activity compared to the previous month. The ISM said that its purchasing manager’s index edged down to 50.0 in July from 50.2 in June, with 50 the reading that separates expansion and contraction. Economists had expected the index to fall to a reading of 49.2.
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