Base Metals Preview: COMEX Copper Soars To 27 Month High

Base Metals Preview: COMEX Copper Soars To 27 Month High

Sep 18, 2020 08:09 IST capital market

COMEX Copper rallied to 27 month high yet again as global central banks remained in a dovish mode. The Bank of England kept its interest rate at a record low on Thursday, but policymakers started to assess how negative interest rates work. The nine-member Monetary Policy Committee unanimously decided to hold the interest rate at 0.10 percent. Policymakers also unanimously decided to retain the size of the asset purchase programme at GBP 745 billion. Japans central bank policy board voted 8-1 to retain the interest rate at -0.1% on current accounts that financial institutions maintain at the central bank. The bank will continue to purchase necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent. COMEX Copper also benefitted from sliding US dollar index which fell under 93 mark. COMEX Copper currently trades at $3.09 per pound, up 0.50% on the day. MCX Copper closed at Rs 531.55 per kg, up 0.43% on the day.

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