Copper cheered on Monday and continued to move higher on Tuesday as
the technical buying supported the metals. Almost all the metals posted
gains as bottom fishing acted as a savior. Till the end of second
quarter, Copper upside remained capped by concerns over tight liquidity
in China that could weigh on demand. Copper leapt 3.4% from Friday's close to $6,978 a metric ton on the London Metal Exchange late in the day, building on earlier gains over supply concerns. It led a rally in all base metals, as a technical recovery compensated for a sell-off in recent weeks after European and U.S. manufacturing index data came in a bit stronger.
Copper's gains were due in part to uncertainties over how soon the Mongolian government will allow Rio Tinto to start shipping copper concentrates from its major new Oyu Tolgoi mine project, which is already in an advanced ramp-up stage and has its permits.
Eurostat said consumer price inflation rose by a seasonally adjusted 1.6% in June, in line with forecasts and up from May's 1.4% reading. The rate stands below the European Central Bank's target of near but just below 2%.
In another report, Eurostat said that the euro zone's unemployment rate rose to a seasonally adjusted 12.1% in May, from April's reading of 12%.
Meanwhile, US Institute for Supply Management said its index of purchasing managers rose to 50.9 in June from a reading of 49.0 in May.
LME three month forward prices of Copper ended at $ 6918 per tonne. The prices were last seen trading at $ 6952 per tonne. Meanwhile, MCX Copper closed at Rs 417.1 per kg, up 2.5 percent. The prices are resisted at Rs 420 per kg, while support is at Rs 415 per kg.
Source by Commodity Insights
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