By Onome Amuge
Base metals prices on the London Metal Exchange (LME) and Shanghai Futures Exchange (SHFE) were on a downtrend as of Wednesday morning while the market awaited direction from the US Federal Reserve when the Federal Open Market Committee (FOMC) is expected to conclude its meeting in the evening.
Copper was down by 0.3 per cent at $7,972 per tonne, while zinc dropped 0.7 per cent at $2,637 per tonne, 9.1 per cent lower than the January 8 high of $2,897 per tonne.
According to market reports, Tuesday’s 46,300-tonne rise in zinc stocks on the LME weighed on prices.
The most-traded base metals contracts on the SHFE were also weak this morning with the exception of March aluminium which gained 0.2 per cent. March zinc led on the downside with a 2.5 per cent loss, March copper was also down by 0.1 per cent at $9,233 per tonne.
For precious metals, Spot gold and silver were both down by 0.1 per cent this morning, at $1,849.17 per oz and $25.40 per oz respectively.
The metals continue to look mixed with tin looking the strongest, zinc looking the weakest and copper trading sideways in a narrow range.
However, base metals remain long-term bullish on account of expecting more infrastructure spending, analysts say.
Gold prices are also expected to rebound, buoyed by overhead resistance above $1,880 per oz.
