Copper sees cautious moves after recent gains

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Copper mostly stayed supported today though sentiments turned a little cautious after recent spurt. The metal extended gains to hit a fresh seven-year high in the last session. The commodity added around 1.5% in US trades to approach $3.80 per pound on COMEX.

Buyers stayed active as global Covid-19 worries have eased amid rapid vaccination and continued drop in fresh daily cases worldwide. A WHO panel recommended AstraZeneca’s vaccine even in countries where new variants have been found.

This has boosted hopes of a quick rebound in the world economy. US Covid-19 cases are also maintaining their lower trajectory and the stimulus talks continue, keeping the overall sentiments supportive for industrial metals.

However, a drop in the US treasury yields yesterday and limited buying in the metal on elevated prices capped the upside. The red metal currently trades down 0.11% at $3.76 per pound. MCX Copper futures are trading at Rs 635.85 per kg, down 0.24% on the day after testing a low under Rs 634 per kg.

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