Finally, somewhat recovery seen in base metals prices as LME metal counter trading with almost 2% gain, where copper, nickel and zinc posted almost 2% gain while lead prices trading near4%gain.
After six continuous sessions of drop, red metal prices rose at Comex due to the weak dollar. Prices had shed almost 12% in last six sessions. Last week, copper shed 9.3%. For the month of May copper shed 7%. In April, copper lost 6.1%. Copper gained about 6% for the first quarter, buoyed by data from the U.S. and other countries reinforced expectations that the global economic recovery was on track. On a year to date basis, in 2010, copper is lower by 14.1%.
China's inflation accelerated to 3.1% on year in May and exports were up about 50% while new loans slowed from a month earlier, Reuters saidWednesday, citing sources who it said had been briefed by a senior government official. The unnamed official gave the information to "an internal investor conference" Wednesday, Reuters said, citing three unnamed sources it said were in the meeting.
New yuan loans totaled CNY630 billion, down from April's CNY774 billion, while inflation accelerated from 2.8% and exports psicked up from 30.5%, Reuters said. Exports in May totaled about $130 billion.
Today, metals prices may trade with sideways to positive. One can enter long in Nickel only above with target of Rs.910/kg. While in Copper prices have strong support at Rs.280/kg.and resistance at Rs.295/kg. MCX Copper could touch the level of Rs.297 today.
