01-01-1970 12:00 AM | Source: Angel One Ltd
Weekly Base Metal Write Up by Mr. Saish Sandeep Sawant Dessai, Angel One Ltd
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Below is Weekly Base Metal Write Up by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd

After witnessing a disappointing performance in the previous week, the base metals pack extended the weakness into the subsequent week with Nickel being the top loser, down over 8 percent.

Metals pack began the week on a positive note as COVID-19 limitations in top metals consumers have been lifted and the anticipation of a revival in demand in China boosted metals prices.

Aluminum prices fell to their lowest levels in over six months this week, while copper prices fell after reaching five-week highs, as investors worried about the impact of weak economic development on metals demand following China's resumed COVID-19 lockdowns and the likelihood of higher interest rates.

Prices rose earlier this week on the strength of expectations of a rebound in demand as China's commercial powerhouse was getting back to normalcy in recent days following a two-month merciless shutdown.

Another factor weighing on metal prices was the US dollar index, which was at a two-week high as the Federal Reserve is expected to raise its key interest rate by 50 basis points each in the upcoming meetings in June and July, and the European Central Bank also announced that interest rates would be raised by 25 basis points in July for the first time in over a decade.

Outlook: We expect copper to trade lower towards 769 levels, a break of which could prompt the price to move lower to 759 levels.   


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