Base metals prices witnessed buying during the week with zinc, copper and lead gaining the most while nickel prices traded lower as an exception. HDFC Securities believe that copper prices would sustain the uptick.
Base metals gained in two trading sessions of the week on the US vaccine hopes and dollar decline while demand growth optimism from China capped downside.
Copper prices continued bullish stance with prices rising to a 2-year high on strong demand from China despite of a rise in weekly inventories at SHFE and LME. However, copper inventories at LME are still 70pc down from the May 2020 peak levels.
THE CFTC data showed that net long positions at COMEX Copper rose by 7,510 lots to 2-year high signaling high investment appetite. LME Copper prices have sustained above the key resistance above $6,750/mt. HDFC Securities expects copper prices to continue bullish trend with resistance at $6,950-7510/mt.