Copper is likely to trade on sidelines during the morning session on Thursday, 12 July 2012, as investors hopes were soured due to the uncertainty over the US Federal reserve stimulus measures. In addition, Copper prices might trade in tight range craving for China's GDP data due on Friday, 13 July. Copper is likely to find support at Rs 418 per kg and Rs 414.3 per kg and resistance at Rs 425 per kg and Rs 426.6 per kg. China will release its GDP figures on Friday, which are expected to be the weakest since the three months to March 2009 during the global financial crisis but may raise chances of Beijing further easing its monetary policy. Copper snapped previous gains and ended lower on Wednesday, 11 July 2012 as the minutes from the latest Federal Reserve policy meeting failed to give investors clear signs of further easing from the central bank and pared day gains during the late trading. Copper dropped by 0.5% at $7520 per tonne on Wednesday at LME. Comex Copper for the most active September contract buoyed by 1.5% or 5 cents at $3.447 a pound. MCX Copper rose by 0.7% or Rs 2.95 at Rs 422.85 per kg and tested an intraday high at Rs 423.65 per kg and low at Rs 417.55 per kg. The dollar index buoyed by 0.1% at 83.48 against the basket of 6 major currencies as the weakness in the euro favored the safe haven dollar. Metals struggled to find direction during the early trading and rose amidst the hopes on Federal Reserve to come out with some policy measures. Also, the drop in the Spain's borrowing costs boosted the sentiment. Yields on 10-year Spanish government bonds fell 27 basis points to 6.53%. But, minutes from the latest Federal Reserve policy meeting failed to give investors clear signs of further easing from the central bank and erased earlier gains. The U.S. Federal Reserve is open to buying more Treasury bonds to stimulate the economy, but the recovery might need to weaken for a consensus to build, minutes from the central bank's June meeting released on Wednesday showed. In industrial metal news, Copper prices should not suffer a significant decline in the coming months as global economic risks are already priced in, as per the KGHM, Europe's No.2 copper producer. Powered by Commodity Insights |