Copper gains as dropped in wake of more weak U.S. data

Copper edged up by 0.12% to close at 737.95, driven by multiple factors that influenced market sentiment. The weakening dollar, propelled by discouraging U.S. private payroll data, played a role in boosting copper prices. Moreover, renewed efforts to support China's struggling property sector contributed to the positive sentiment in the market. A significant development affecting copper prices was the rise of the Yangshan copper premium to its highest level since December 2022, reaching $52 a ton. This increase was driven by the price differential between London and Shanghai, which presented an opportunity for profitable metal shipments to China.

Additionally, China's measures to bolster its stock market, including the reduction of stamp duty, contributed to an overall improvement in risk sentiment across various financial assets. The International Copper Study Group (ICSG) reported a deficit of 90,000 metric tons in the global refined copper market for June, marking an increase from the 58,000 metric tons deficit in May. However, the market experienced a surplus of 213,000 metric tons for the first half of the year, in contrast to a deficit of 196,000 metric tons during the same period the previous year.

From a technical standpoint, fresh buying activity was observed, with open interest rising by 1.12% to settle at 5218. This uptick in open interest accompanied a minor price increase of 0.85 rupees. Looking ahead, Copper finds support at 736.2, with the possibility of testing 734.4 if this level is breached. Conversely, resistance is anticipated at 739.3, and prices may test 740.6 if an upward movement occurs.

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