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Informist, Thursday, Aug. 28, 2025

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of copper rose Thursday on the Multi Commodity Exchange of India, tracking a rise in contracts on the London Metal Exchange, because of a weak dollar. Market sentiment was also boosted by rising hopes of an interest rate cut by the US Federal Open Market Committee at its September meeting.

 

At 1822 IST, the dollar index, which measures the strength in the greenback against a basket of six currencies, was down 0.3% at 97.88. A weaker dollar makes dollar-denominated commodities like base metals cheaper for those holding other currencies, aiding demand.

 

Traders have ramped up bets of a rate cut at the US FOMC's September meeting, a few days after US Federal Reserve Chair Jerome Powell hinted at resuming rate cuts. Fed fund futures traders now show an 87% chance of a 25-basis-point rate cut by the US FOMC in September, up from 75% a week ago, according to the CME's FedWatch Tool. 

 

Powell hinted at a potential rate reduction at the US Federal Open Market Committee's September meeting. He acknowledged growing concern about employment conditions and emphasised persistent inflation risks.

 

Meanwhile, "...copper trading volumes continue to slide as underlying prices remain broadly range-bound," Dow Jones quoted Neil Welsh, head of metals at Britannia Global Markets, as saying in a note. "This reflects muted industrial demand from China and cautious global growth sentiment, coupled with easing supply-side concerns on improved physical output from key producers," Welsh added.

 

Market participants are now awaiting the US July Personal Consumption Expenditures Price Index data, the US Federal Reserve's preferred measure of underlying US inflation, due Friday for further cues.

 

At 1753 IST, on the MCX, the September futures contract of:
-–ALUMINIUM was at INR 253.20 a kg, up 0.2%
–-Copper was at INR 888.60 a kg, up 0.4%

–-LEAD was at INR 180.65 a kg, down 0.1%
–-ZINC was at INR 266.40 a kg, up 0.3%

--NICKEL was steady at INR 1,323.00 a kg 

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 251.00-INR 255.00
--Copper contract seen at INR 880.00-INR 896.00
--Lead contract seen at INR 179.50-INR 182.00
--Zinc contract seen at INR 264.00-INR 269.00

--Nickel contract seen at INR 1,310.00-INR 1,335.00

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Subhojit Sarkar

 

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