Copper yesterday settled down by -3.09% at 636.1 weighed down by aggressive monetary tightening around the world that stoked fears of a global recession and dampened metals demand. The US Federal Reserve led the charge with its third straight 75 basis point rate hike to bring down inflation, along with increases by the Bank of England and the Swiss National Bank, among others. Economic uncertainties in top metals consumer China also weighed on sentiment after Nomura and Goldman Sachs (NYSE: GS ) lowered their growth forecasts for the country, citing expectations that its strict zero-Covid strategy would extend well into next year. According to a Bloomberg report, the recent downturn in prices and the under-investment that ensues also threaten to exacerbate the scenario. The exchange said that copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.9 % from last Friday.
The global refined copper market showed a 30,000-tonne deficit in July, compared with a 105,000-tonne deficit in June, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first 7 months of the year, the market was in a 126,000-tonne deficit compared with a 183,000-tonne deficit in the same period a year earlier, the ICSG said.
Technically market is under fresh selling as the market has witnessed a gain in open interest by 108.57% to settle at 5473 while prices are down -20.25 rupees, now Copper is getting support at 628.1 and below same could see a test of 620 levels. Resistance is now likely to be seen at 649.7, a move above could see prices testing 663.2.
# Copper trading range for the day is 620-663.2.
# Copper weakened weighed down by aggressive monetary tightening around the world that stoked fears of a global recession and dampened metals demand.
# Economic uncertainties in top metals consumer China also weighed on sentiment after Nomura and Goldman Sachs lowered their growth forecasts
# Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.9 % from last Friday.
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