Tuesday, 18 June 2013

Copper rises on upbeat demand prospects, weak dollar

Copper prices rose by 0.39 per cent on Tuesday at the domestic markets as leaders from the Group of Eight (G8) nations exuded optimism that the worst was behind for the global economy as risks have reduced due to the easing measures by policymakers in the US, Euro zone and Japan in turn bolstering the demand outlook for the base metal. At the MCX, copper futures for June 2013 contract were trading at Rs. 411.05 per 1 kg, up by 0.39 per cent, after opening at Rs. 410.80 against the previous closing price of Rs. 409.45. It touched the intra-day high of Rs. 411.75 till the trading. Sentiment improved further as a survey of builders suggested an improved housing market, signaling a pickup in the world’s biggest economy. NAHB housing market index rose to 52 this month from 44 in May 2013, with a reading over 50 indicating a positive outlook. Moreover, weaker greenback makes the copper cheaper for those holding other currencies, thus increasing demand. The U.S. dollar index, a measure of the value of the United States dollar relative to a basket of foreign currencies, was trading 0.11 per cent lower at 80.699 on the Inter-Continental Exchange (ICE).At COMEX, copper futures for July 2013 contract traded at US$3.1830 per pound, down by 0.45 per cent. It opened at US$3.1985 against the previous closing price of US$3.1975. It touched the intra-day low of US$3.1780 till the electronic trading.

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