Published on 1/08/2022 12:21:03 PM | Source: Angel One Ltd

Weekly Basemetal Update : Weakness persisted in the base metals by Mr. Saish Sandeep Sawant Dessai, Angel One

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Below is Weekly Basemetal Report by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd

The industrial metals pack managed to conclude the week on a positive note after being under constant pressure in recent months, with LME Zinc being the leading gainer with a gain of about 11%.

Following the Federal Reserve's 75 basis point increase in interest rates to combat the rising inflation, this week saw a recovery in metal prices from their lows, with copper rising to a three-week high on the back of a weaker dollar, making dollar-priced metals more affordable to customers using other currencies.

The metal used in electricity and construction did bounce back from 20-month lows. However, it is still down nearly 30% from a record high in March, and the aggressive interest rate hikes in several countries can cause an economic slowdown.

Another notable development was the reports that China may offer 1 trillion yuan in loans for real estate projects that have stalled since the stimulus will increase market confidence and raise expectations for more demand from the top consumer after COVID-19 lockdowns hampered industry activity.

Outlook: We expect copper to trade higher towards 666 levels, a break of which could prompt the price to move higher to 677 levels.



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