Copper gains pull tin to near record high
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London Metal Exchange base metals held overnight gains buoyed by a rebound in broader financial markets, with copper pulling tin higher, traders and analysts said.
However, builds in inventories suggest a slip lower in on the horizon.
As of 1152 GMT, LME copper was trading at $7,083/tonne, up 2 per cent from Tuesday’s kerb, pulling up LME tin to $17,150/tonne, near its all-time high of $17,225/tonne touched November 8.
LME zinc and lead rose nearly to be at $2,677/tonne and $3,520 /tonne respectively and LME aluminium and nickel were up close to 1 per cent at $2,604/tonne and $33,725/tonne, respectively.
Base metals are being led by a rebound in equities Wednesday, analysts said, after markets in Asia tracked gains on Wall Street, with the Dow Jones Industrial Average closing up 319 points. This came largely on the back of better than-expected third-quarter results from Wal-Mart Stores Inc. “The significance of the Wal-Mart results is that most of the sales were in the US perhaps an indication that the US consumer isn’t feeling the pinch as much as initially thought’, said Standard Bank analyst Mr. Walter de Wet.
In the near term, LME copper Wednesday looks set to Challenge upside resistance at $7,200/tonne, traders said.
NICKEL EYES $35,000
In other metals, LME nickel is targeting $35,000/tonne, lead, $3,680/tonne, tin $17,500/tonne on the upside, said a trader.
LME Zinc may eye $2,790/tonne depending on a rally in copper, said an LME trader.
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Source : Business Line |
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