Base metals prices show positive trends on buoyant monetary policy outlook

Base metals prices on all major exchanges witnessed positive trends on 30 November, 2022.

Copper future prices on Thursday climbed to their strongest in two weeks, supported by a weaker dollar and signs of top metals consumer, China, shifting away from its stance of stringent COVID-19 curbs.

Fed may hike rates in Dec'22

The US Fed may increase its key interest rate by a small margin at its December meeting, maybe only half a point, after four straight three-quarter point hikes.

The real gross domestic product (GDP) of the US increased at an annual rate of 2.9% in the third quarter of 2022, according to the "second" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP decreased 0.6%.

Despite high interest rates and chronic inflation, the US economy grew at a 2.9% annual rate from July through to September

India market overview: Base metals prices in India's domestic market were mostly fim yesterday despite an upward trend on the LME due to limited activities.

Base metal market performance

LME's three-months copper contract edged up by 2.5%, nickel rose 0.5%, aluminium was up 4.1%, zinc rose 3.5%, and lead increased 2.8%.

SHFE copper gained 1.16%, aluminium added 1.89%, lead rose 0.19%, and zinc advanced 1.8%.

LME stock levels mostly down

Base metals stocks at LME-registered warehouses decreased by up to 1.3% d-o-d in the last session.

Oil prices rise

Brent oil futures rose 1.5% at $85.43 per barrel, while crude oil WTI futures went up by 2.4% to $80.41 per barrel at the time of reporting.

Dollar index

The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered at 106.52, down marginally by 0.25% against the last session.

The rupee was recorded at 81.09 against the US dollar, appreciating 0.60 paise against the last closing.