On Friday, a basket of industrial metal futures’ prices had wrapped up the day in an upbeat tenure as copper futures pared nearly half of previous session’s losses, mostly driven by a bargain hunting or ‘buy the dip’ move from the market participants after yesterday’s heavy losses, while a weaker US Dollar keeps industrial metals cheaper.
In point of fact, in the day’s meteoric upsurge in industrial metals’ prices came forth as US Labour Department’s closely observed nonfarm payrolls data came below an analysts’ estimate of 650,000 jobs in May, calming investors’ jitter that the US Fed might begin to taper off fiscal support for the economy in a near-term outlook and leading to a steep decline in American currency which in turn had led to an uprising in metal contracts’ prices.
Copper, industrial metals’ prices soar amid weaker US Dollar
Citing statistics, in the day’s market closure, the LME (London Metal Exchange) Copper scheduled to be expired on August, rose 1.9 per cent to $9,972.50 per ton after plunging as much as 3.8 per cent in previous session, however, Shanghai Copper futures due to be expired on July had faltered as much as 3.6 per cent to $11,001 per ton.
Nonetheless, London copper futures’ prices had hit a record closing high of $10,747.50 last month over hopes of solid economic recovery alongside an expected shift to green energy revolution. Among other industrial metals, LME tin futures’ prices leapfrogged 2.7 per cent to $30,805 a ton and LME aluminium gained 2.2 per cent to $2,457.50 per ton, while LME lead and nickel contracts advanced 1.3 per cent and 0.8 per cent respectively to $2,144 and $18,030 per ton.
Meanwhile, referring to a wide-spread ripple of ‘buy-the-dip’ move, a Julius Baer analyst Carsten Menke in Zurich said, “It’s bouncing today because of bargain hunting. The overall attitude is still bullish for industrial metals and commodities in general.
The fundamentals for industrial metals are good, but expectations have been excessive as to where prices should be based on the fundamental backdrop. ”