Copper futures prices may continue to rule firm in the short term mainly on fund buying and declining inventories at LME warehouses and Shanghai. Copper November futures on MCX moved up by about 6.5% or Rs 20 to trade at Rs 313.60 per kg on Saturday over first week of current month. LME copper had gained by more than 6% to test 7-week high of $7970 a tonne after the US Federal slashed benchmark interest rates by 50 basis points, strong rally in precious metal complex and record fund buying on the exchanges.
Markets were well supported by declining inventories at LME registered warehouses and Shanghai. With potential demand in US supported by economic growth prospects and renewed investor confidence, copper prices continue to trade higher, Debjyoti Chatterjee, MAPE ADMISI Commodities said.
?We expect the rally to continue in the short term and one can buy November contract at Rs 311 a kg with a stop loss below Rs 306 levels and targeting Rs 322 a kg,? she said.