Copper prices extended gains mainly on robust Chinese growth despite several rounds of monetary tightening to curb inflation. The recent US housing report also propelled prices as it showed that U.S. home construction in June climbed to its highest level in five months. Newly issued building permits, rose 2.5% for the month, to the highest rate since December.
Prices may trade in a range with upward bias as copper market is likely to remain in deficit on global copper supply constrain in coming months due to labour unrest hitting the major mines of Chile and Indonesia.
The robust Chinese demand as indicated by rise in Chinese imports is expected to support uptrend. Imports of refined Copper in China increased for the first time in 3 months by 20 percent as buyers replenished stockpiles after local markets contracted.
Copper is trading firm on weekly charts with the counter witnessing a sustained upside momentum for the last seven weeks and is also seen trading above its major 50 and 200 day EMA. Moreover, it is trading above the central line of Bollinger Band suggesting the up thrust in the counter is well supported technically.
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