MCX Copper recuperated after the upbeat US economic data and the statement by Federal Reserve Chairman consoled the markets. Although LME Copper ended the ring trades down, the prices have recovered in early Asian trades on Wednesday. Copper three month forwards is trading at $ 7895 per tonne, after closing the last session down by $ 92 per tonne at $ 7793 per tonne.
Recovery in the US Dollar was downplayed by metals as the recovery in US new home sales and consumer confidence charged buying. US Dollar ended at 1.3059 against the Euro as against 1.3061 on 25 Feb 2013. Indian Rupee closed at 54.097 against US Dollar, down 227 pips.
Federal Reserve Chairman Ben Bernanke downplayed speculation that the central bank is getting ready to end quantitative easing programme. Bernanke said that the bond buying programme of $ 85 billion per month was necessary to keep housing recovery in progress.
The Conference Board said its consumer confidence index jumped to 69.6 in February from a revised 58.4 in January. Economists had been expecting the index to climb to 61. Meanwhile, New home sales in US surged by 15.6% to a seasonally adjusted rate of 437000 in the month of January as per the report from Commerce department.
Indian Copper April expiry closed at Rs 432.7 per kg, up 0.81%. The prices tested a high of Rs 433.5 per kg and a low of Rs 427.3 per kg. Copper is supported at Rs 426 per kg while the Resistance for the contract is at Rs 435 per kg. The prices are expected to open higher on Wednesday following rise of prices in LME.
MCX Nickel bounced by 0.56% on Tuesday at Rs 911 per kg. The prices tested a high of Rs 912.4 per kg and a low of Rs 896.4 per kg. It is expected that Nickel will form a base at Rs 895 per kg.
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