Copper yesterday traded with the negative node and settled -1.16% down at 417 posting its biggest weekly loss since mid-March, as mounting inflationary pressure in China cast a shadow over the near-term demand outlook.
Copper again shunned rallies in the precious metals complex, with gold and silver surging to record and 31-year highs, respectively, as investors bought both metals as a hedge against global inflation worries and rising oil prices.
Chinese consumer price inflation sped to 5.4 percent in the year to March, the fastest since July 2008 and topping market forecasts of 5.2 percent. Gross domestic product in China, the world's top copper buyer, eased a touch.
China accounts for about 40 percent of copper demand. In yesterday's trading session copper has touched the low of 416 after opening at 422.5, and finally settled at 417.
For today's session market is looking to take support at 414.3, a break below could see a test of 411.7 and where as resistance is now likely to be seen at 421.3, a move above could see prices testing 425.7.
Trading Ideas:
Copper trading range is 411.7-425.7.
Copper fell as mounting inflationary pressure in China cast a shadow over demand.
Copper is taking resistance at 421.30 and support is seen at 414.30.
Copper weekly stocks at Shanghai exchange came down by 6578 tonnes.
