Comex Copper, Silver climb as China factory data jumps
MUMBAI-INDIA (Sept 3) With the Chinese economy apparently averting a sharp downturn as reflected in the factory data reading at 50.1 for August, copper and silver futures climbed on the Comex. The survey came out following the official PMI figures--51.0 compared to 50.6-- from China, which also indicated expansion. Silver has a great deal of industrial applications facilitating a climb.
"We are definitely stabilising, but it's going to be a pretty weak to flat recovery," said Stephen Green, an economist at Standard Chartered who was quoited by The Business Standard as saying.
Silver on the Comex for delivery on December 13 was seen trading at $24.218/oz, a gain of $0.705 or 3.00% as of 11.10 AM IST. Copper on the Comex for delivery on December 13 was seen trading at $3.307/oz, a gain of $0.068 or 2.11% as of 11.12 AM IST.
Silver on India's MCX for delivery on September 5 was seen trading at 53100 a kilogram a loss of 0.21%. Copper for delivery on November 29 was seen trading at Rs.487.85 a kilogram, a gain of 0.18% as of 11.04 AM IST.
“MCX Copper November futures have immediate support of 481 level and on breaking the same, has next support of 475 levels. While to the upper side, prices have resistance of 491 breaching it and sustaining above the same may take it to 496 levels. MCX Nickel September prices have an intraday support of 915 level while resistance level is seen at 945 level,” said Tarang Parmar, Research Analyst at Commodity Online.
Meanwhile Barlcays in a report noted that copper and aluminium could be “the most attractive shorts at current prices.”
“We see potential for copper to hover above $7,000/t in the short term before reaching new lows into the year end; and we view aluminium and copper as the most attractive shorts at current prices,” Barclays said in a report.
“With the Chinese import arbitrage window closedfor most of August and Shanghai copper premiums having fallen close to $40/t from their peak, cathode shipments originally destined for China could be increasingly diverted to LME warehouses such as Johor,” report continued to note.
