Copper prices rebounded from the low of the day and rose more than half a percent on Tuesday. Prices rose to a two-week high on a weaker dollar and China, the largest consumer of metals, and lower mortgage rates.
MCX futures copper futures rose 0.69% to 72,515. Since February 12, 2024, the lowest prices in almost three months have risen by 3%.
China yesterday announced its biggest mortgage rate hike, cutting the five-year key rate by 25 basis points.
The PBOC cut the five-year LPR, which is used to secure mortgage loans, from 4.10 percent to 3.95 percent, while the one-year LPR remained at 3.45 percent.
Yesterday’s change was somewhat unexpected, as the central bank kept medium-term interest rates unchanged over the weekend. However, the deterioration of China’s economic situation has led some investors to accept a greater relaxation of the country’s and monetary policy. Panama ordered First Quantum to close.
Further, The FOMC Minutes today’s might offer some hints about further monetary policy, given recent signs of stubborn inflationary pressures. That will have a strong impact on the metals prices.
Technical Outlook – Copper
Near-Future copper prices at MCX division, rose 0.69% to 725.15 from 720.15 the previous day. Since February 12, 2024, the lowest prices in almost three months have risen by 3%.
Since February 12, 2024, prices have found strong support above 699.50 and returned to yesterday’s high of 725.95. From the perspective, prices did not rise above 699.50 and touched both immediate resistances at 713.50-718.00
Bullish candlestick pattern formation indicates imminent upside. However, prices should break 726.20 to test 732.50-735.00.
Otherwise, prices may consolidate between 722.00-712.50.00. And any dip can provide a near-term buying opportunity.
The downside was that major support remained intact below 699.50, but just below that price can be pulled to 693.50-690.00
Commodity Samachar
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