Base Metals Preview: Copper holds gains amid plunging inventories

Sustained weakness in dollar index during the last couple of days in keeping copper prices supported. The dollar index is seen easing to near 97 mark on Thursday, its lowest level in more than three years amid easing geopolitical tensions and expectations of Federal Reserve rate cuts. Moreover, plunging LME copper inventories and positive cues from equities are also driving red metal to three-week high. LME Copper inventories continued to drop in last session, testing fresh 22-month low. Inventories plunged 1200 tonnes to 94675 tonnes. LME copper stockpiles have dropped over 63% year-to-date. Meanwhile, the tech-heavy Nasdaq rose 61.02 points or 0.3 percent to a new four-month closing high of 19,973.55, the S&P 500 edge down 0.02 points or less than a tenth of a percent to 6,092.16 and the Dow slipped 106.59 points or 0.3 percent to 42,982.43. Currently, COMEX copper is quoting at $4.95 per pound, up 0.76% on the day.

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