Mcx commodity tips: Copper prices plunged in the domestic market on Friday as a stronger dollar took the sheen off the industrial metal by curbing demand for copper as an alternative asset. Stronger greenback makes copper more expensive for those holding other currencies, thus hitting demand. Further, a drop in German business confidence in the month of May 2015 signaled a faltering recovery in Europe’s biggest economy, darkening the demand outlook for industrial metals. The gauge measuring German business sentiment fell for the first time in seven months, dropping to 108.5 in May from 108.6 in April, the Ifo Institute reported. Copper may extend a drop today as investors fret over a 2015 US interest rate hike after Fed Chair Janet Yellen termed a 2015 rate hike as “appropriate”. At the MCX, Copper futures for June 2015 contract closed at Rs 396.50 per 10 gram, down by 1.58 per cent after opening at Rs 402.60, against the last closing price of Rs 402.85. It touched the intra-day low of Rs 394.65 till the ending.
Zinc futures plunged more than 1 per cent in the domestic market on Friday as investors and speculators exited positions in the industrial metal amid weak physical demand for zinc in the domestic spot market. Investors cast aside data which showed a pickup in growth in the world’s second biggest economy, boding well for the demand outlook for zinc. The China leading index climbed 1.1 % in April from March, when it rose 0.5% the Conference Board said. However, the report warned that “despite April’s gain in the Leading Economic Index for China, its 6-month increase rate continues to slow. At the MCX, Zinc futures for May 2015 contract closed at Rs 138 per 1 kg, down by 1.22 per cent after opening at Rs 140.10, against the last closing price of Rs 139.70. It touched the intra-day low-lying of Rs 137.30 till the ending.
