Base Metals Preview: MCX Copper Gains 1%

16 May 2022 , 12:07 AM

COMEX Copper recovered on Friday, holding near $4.16 levels after a sharp plunge towards a seven-month low earlier in the week. MCX Copper closed up 1.1% at Rs 753 per kg. China covid cases and lockdown that could hurt demand from the worlds top consumer of copper has weakened the demand for the metal. Surging dollar to fresh two-decade highs and global equities tumbling on worries over a higher interest rate environment hurting global growth further weighed on the metal prices. Meanwhile, producer prices in the US increased 0.5% mom in April of 2022, less than an upwardly revised 1.6% rise in March and mostly in line with market expectations. The report showed energy prices surged by 1.7 percent in April after soaring by 6.4 percent in March, while food prices shot up by 1.5 percent after spiking by 2.5 percent. Excluding prices for food, energy and trade services, core producer prices climbed by 0.6 percent in April following a 0.9 percent increase in March. Powered by Commodity Insights