COM: Base metals rise on weak Dollar, firm equities
By Shyamal Mehta, Commodity Online: Economic indicators from US gave negative signals and kept USD weak Tuesday. Base metals ended higher on Tuesday as Dollar weakened against Euro and other major currencies. Further quantitative easing from Fed is likely to keep dollar weak and fall further pushing the metal prices up.
Metal prices are likely to rise further on the back of improved industrial demand from developing countries. Supply side is also likely to remain constrained in some metals which may also add fuel.
Base metals complex is entirely driven by liquidity and is likely to continue its uptrend this week also. Apart from Currency movements, Global equity markets will also decide the direction of base metals.
Traders are eyeing on US jobless claims and GDP data coming on Thursday this week. Short term traders are advised to buy metals on dips. MCX Nov Copper contract may hit 365-369 levels within next few trading days while Aluminium can touch 105-107 levels.
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