New Home Sales Rebounce, Copper Reunites With Buyers
New home sales data from the US for the month of June helped Copper reunite with buyers on Monday. The prices opened on a sideways note but extended northwards on increase of buying positions.
The Commerce Department said sales rebounded by more than expected in June.
The report showed that new home sales rose by 23.6 percent to an annual rate of 330,000 in June from the revised May rate of 267,000. Inventories are at a 42-year low.
The buck dipped to 1.3000 versus the euro, unable to move back toward June's 4-year high of 1.1805.
Fresh declines in the stockpiles helped recouping the prices. LME Inventories were down by 3375 tonnes to 416275 tonnes. The inventories are now at November 2009 levels.
On LME, Copper closed with marginal gains of $ 6 to $ 7026 per tonne. Meanwhile, Shanghai Copper benchmark contract closed trading with gains of 460 yuan per tonne extending from gains of 40 yuan in early Asian trades to 55570 yuan per tonne.
Shanghai Copper is seen trading sideways in early Asian moves. The counter is at 55440 yuan per tonne, up 20 yuan. COMEX Copper benchmark contract is at $ 3.214 per lb, down 1 cent.
MCX Copper was up by almost 1%, to Rs 333.9 per kg on closing. The prices tested a high of Rs 334.8 and a low of Rs 328 per kg.
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