Friday, 03 April 2015 11:18

Copper Erases Earlier Gains Before U.S. Data Release

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Copper fell to Rs.453.35 at domestic market before Fed members meet for two days meeting that will begin from today and U.S. Durable Goods Orders.

Durable Goods orders are expected to fall at 1.9% from earlier 3.4%. Vehicle sales dropped this month by 1 million that may negatively affect durable goods orders. In manufacturing PMI new orders had shown contraction in December at the reading of 49.4 from previous 56.4. Overall the indicator may show negative result that may adversely affect copper prices.

Fed tapering program is expected to continue in second month sequentially. Strong dollar may weaken not only copper but also other metal prices in near time. Slow growth of emerging economies may also hamper demand for copper this year.

Traders may hold for Fed decision before making big bets on this metal. In other industrial metals, lead dropped heavily by 1.98% at Multi Commodity Exchange.

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