Metals Move Higher In Pre-Market

Base metal markets continued to edge higher during Thursday LME pre-market trading, following on in most instances from the previous afternoon, traders said.

The price trends were generally seen as technical, given the bounces from downside chart points yesterday, although there is little scope for significant rallies.

The softer dollar this morning was also beneficial, prompting some Far Eastern buying interest.

There was a slightly better close last night, and the market is running short. So, there is a bit of short-covering around, one trader said.

But nothing much has changed - the rallies are being seen as selling opportunities, he added.

 

Copper prices touched $1,730 before settling at $1,726, up $4 a tonne from Wednesday's kerb, with the usual inventory increase being ignored.

Traders noted that the market stalled at $1,730 which is where 30-day moving average resistance is pencilled in. On the downside, support should emerge around $1,680. Aluminium similarly followed through from yesterday, and was $5 higher at $1,527. The market appears to be consolidating above $1,520 - the 30-day moving average level but there is likely to be resistance up to $1,540.

Short covering helped nickel run up above $5,500 to settle at $5,540, up $125 with the extent of the price move a reflection of the market's customary volatility in thin conditions.

Zinc was trading just $2 higher at $1,111 while lead gained $8 at $543. Tin was $5 higher at $5,280 while alloy was indicated at a steady $1,345/50 a tonne.