II:Strong US Dollar And Renewed Worries From Euro Zone Led Metals To Tumble
Base metals slid to a negative close after a volatile trading last week due to fresh worries emanated from the Europe about the default of Greek. Market participants are more worried that ECB bond buying program could be under threat as the news out of Europe indicated that ECB board member Juergen Stark will step down from his post. Strong dollar also hemmed in prices.
Further, US Treasury Secretary Timothy Geithner in Marseilles, France commented that any dramatic policy changes were not seen from the upcoming G7 meeting also knocked the investors sentiment.
The fall in euro amid the fresh fears of economic turmoil in Europe bolstered the dollar and led the dollar index to amplify by 1.19 at 77.18 against the basket of 6 major trade peers which was the highest index value ever seen from past three months.
In the domestic market at MCX, Copper for delivery in November slipped by 0.1% or Rs. 0.4 at Rs. 415.65 per kg with its high at Rs. 416.55 per kg. Amidst the volatile trading during the last week, red metal touched a high of Rs. 426.5 per kg. The open interest dipped by 0.67% to 19,319 lots and volume traded stood at 2616 lots against 104,981 lots trade last day. The contract ended below 5-day EMA and the 14-day RSI stood at 46.97.
Aluminium ended flat at Rs. 109.95 per kg and Lead ended flat at Rs. 115.1 per kg. MCX Zinc remains unchanged at Rs. 102.1 per kg and Nickel weakened by 0.12% or Rs. 1.2 at Rs. 995.1 per kg.
In overseas market at Comex, Copper futures for most active December contract settled lower at $4.0025 a pound, down 3.4% or 14 cents compared to the previous day that ended at $4.1435 a pound.
At LME, the Three-month-delivery copper on the London Metal Exchange ended lower by $139, or 1.53% at $8,922 a metric ton. Copper inventories on the LME warehouse fell by 50 tonnes from previous day to close at 465225 tonnes.
Among other traded metals at LME , Lead in London surged by 1.3% to $2,435.5 a ton and nickel traded flat at $21,535 a ton. Aluminum ended tad lower $2,380 a ton, down 0.98% and zinc fell by 0.38% to end at $2,210 a ton.
