Base metal complex up by half percent as weaker dollar and strong financial markets lent support to prices. However worries about slow recovery in US kept metals in check as interest rate kept unchanged at 0.25 percent. U.S.
Federal Reserve said that it stood ready to provide more support to the economy, which sent the dollar lower. Further low volume seen in base metals on absence of Chinese traders due to holidays.
Copper prices sustained above $7700 on as stronger euro amid declining stocks adding some supports. In longer term limited new supply from the world's copper mine against rising demand limiting losses.
According to International Copper Study Group, World refined copper consumption exceeded production by 281,000 tonnes between January and June this year, against a deficit of 125,000 tonnes in the same year-ago period.
Today, house price index and jobless claims data from US will be released, which may decide the trend for base metals.
Copper has resistance of $7820 at LME and `356 in MCX with support lies at `352. And Zinc has support of `97 and resistance of `98 Nickel getting support at `1015 and resistance near ` 1035. Lead has support at 98 & resistance at 99.
