Weekly Base Metal Write Up by Mr. Saish Sandeep Sawant Dessai, Angel One Ltd
Below is Weekly Base Metal Write Up by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd
The base metals pack continues to shine, as all the metals ended on a positive note, with LME Nickel being the top gainer. Investors predicted that slower US interest rate increases and a relaxation of China's COVID-19 limitations would enhance the outlook for demand, and copper prices added to gains from the previous week.
As a result, the prices increased to nearly two-week highs. A weaker dollar and forecasts that inflation has peaked and the pace of central bank rate rises will slow contributed to copper reaching its highest level in almost two weeks. Rate hikes obstruct economic expansion.
Metals priced in dollars are now more affordable for customers using foreign currencies as the currency dropped to its weakest level since June. Chinese policymakers made it simpler for real estate developers to get capital, helping a metals-intensive industry that is facing a debt crisis.
In an effort to increase GDP, the Chinese government has put in place a number of programs, but the recovery has been slowed down by COVID issues and a global economic downturn.
Outlook: We expect copper to trade higher towards 705 levels, a break of which could prompt the price to move higher to 716 levels.
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