DAILY UPDATES

MONDAY 19 TH MAY

UPDATES FOR THE DAY


Copper falls following large rise inventories.


Copper fell in early London trade on Monday as a large rise in inventories of the red metal weighed on investor sentiment.
At 10.32 a.m., London Metal Exchange copper for three-month delivery was trading at $8,400 per tonne against $8,439 per tonne at the close on Friday.
Stockpiles monitored by the LME rose by 1,500 tonnes to 122,725 tonnes in today's report from the exchange, with the majority going into warehouses in Gwangyang, South Korea.
However, prices have taken support due to concerns stemming from last week's devastating earthquake in China's Sichuan province, as short-term supply disruption fears and expectations for higher metals demand for reconstruction work have boosted buying.

In other metals traded on the LME, tin fell as investors chose to lock-in profits following recent gains. The grey metal has hit a series of record highs this year amid fears supply from major producers China and Indonesia is set to fall. Tin was trading at $24,500 against $24,650. Tin hit an all-time high of $25,550 on May 15, rising by almost 50 percent since the beginning of the year.
Elsewhere, lead slipped to $2,290 per tonne from $2,342 per tonne at the close on Friday, aluminium dropped to $3,027 per tonne against $3,040, while nickel eased to $26,100 from $26,400. Zinc was trading at $2,303 against $2,3

BULLION UPDATE
Gold futures climbed as much as $13 an ounce Monday as some weakness in the U.S. dollar and surging crude-oil prices boosted demand for the precious metal and brought prices to their highest level in a month.

CRUDE UPDATE
Crude-oil futures edged higher Monday, after surging above $127 a barrel earlier in the session, as weakness in the U.S. dollar underpinned oil prices.

In the currency markets, the dollar drifted to a two-week low against the euro and lost ground against most other major currencies, weighed down by ongoing worries over U.S. consumer confidence
Dollar weakness typically boosts dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies.

UPDATES

FRIDAY 16 TH May Indian Standard Time 20.30

TRADING CALL

SELL MCX NICKEL JUNE :BELOW 1121 TARGET 1105 STOP

LOSS 1128. CMP 1125

CURRENT UPDATE

FRIDAY 16 TH MAY 20.05 INDIAN TIME

All Base Metals have broken crucial Resistance levels and may test further

resistance .

MCX JUN COPPER Rs. 358,361

MCX MAY ZINC Rs .101

MCX MAY LEAD Rs 101

BASE METALS AND BULLIONS

FRIDAY MAY 16 TH

Copper prices edges higher in line with the majority of the other Base metals as ongoing supply fears outweighed concerns over weakness in chinese demand as prices hold over $8000 per tonne.
Supply from major suppliers Chille and Peru have been disrupted this year by strike action by miners.Stock pile of the red metal monitored by the LME have dipped by more than a third from the beginning of this year.

Chinese demand has also been seen to soften, as high prices discourage buying. Copper users are running down their existing stocks of the red metal rather than buying fresh supplies at today's elevated prices




Analysts are also concerned that U.S. demand will be soft this year as the economy, and particularly the housebuilding sector, continues to languish. The construction industry is a major consumer of copper for pipes and wiring


Among other metals traded on the LME, tin bucked the upward trend to slip lower, as investors took profits after recent gains. The grey metal has hit a series of record highs this year amid fears supply from major producers China and Indonesia is set to fall.
Tin was trading at $25,200 against $25,300.
Elsewhere, lead rose to $2,300 per tonne from $2,276 per tonne at the close Wednesday, while zinc was trading at $2,325 against $2,318.
Aluminium was higher at $3,028 per tonne against $3,011, and nickel climbed to $26,400 from $26,310


PRECIOUS METALS: NY Gold Seen Up $15, Silver Up 32 Cents


In overnight activity, gold prices traded on the spot market were steady in Europe, and market participants said the metal could repeat Thursday's move higher when the U.S. opens. Gold is likely to attract more technical buying when the U.S. enters the market, with buying on dips seen helping push the metal above $888 a troy ounce in the coming sessions, said a London trader. In other markets that have the potential to impact metals in the short term, the euro is up to $1.5479 from $1.5441 late Thursday afternoon. In screen trading ahead of the pit open, the June S&P 500 futures are up 2.70 points to 1,427.30. June crude is up $2.59 to $126.71 in overnight activity.

In New York Thursday, gold closed higher with the help of short covering and technical strength, traders and analysts said. June gold rose $13.50 to $880. July silver rose 7.2 cents to $16.685.