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"Quote - Copper" by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd

The base metals pack continues to be under a bear grip, as prices continue to move southward. We are seeing a consistent underperformance in this segment, with metals trading at month lows on the LME and the domestic bourse, MCX.
 

The prolonged weakness comes against the backdrop of weaker macros, mainly because of the strength of the dollar. The dollar index is hovering near 7-week highs, making the greenback-priced metals more expensive for holders of other currencies. whereas other headwinds also weighed on the prices of the metals, namely the ongoing US debt crisis. The latest round of talks held between US President Joe Biden and House Speaker Kevin McCarthy ended with no agreement; however, the two are scheduled to meet again in the week ahead. Failure to raise the debt ceiling would result in a default, causing financial markets to tremble. Concerns over China and metals weighed on sentiment as well.
 

Metal prices, meanwhile, are projected to stay under pressure given the current sentiments.

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