SUN BUSINESS REPORTER writes
LONDON copper prices inched up in early trade on Wednesday after a more than 1 percent drop in the previous session, as the dollar fell from a three-week peak and investors awaited the minutes of the Federal Reserve’s July policy meeting.
Three-month copper on the London Metal Exchange rose 0.3% to $5,725 a tonne by 0149 GMT, after closing down 1.1% in the previous session on concerns of weak demand in top metals consumer China.
This is according to Barclays Bank Zambia daily market updated released yesterday.
The bank further reported that the price of gold rose on Tuesday to firm above $1,500, recovering from a more than 1 percent slide in the previous session, as U.S. yields fell on increasing expectations for looser monetary policy to address fears of a global downturn.
Spot gold was up 0.7percentr at $1,505.68 per ounce after falling to a near one-week low of $1,492.10 on Monday. U.S. gold futures settled up 0.3 percent to $1,515.7.
On oil, Barclays reported that prices steadied on Tuesday on optimism U.S.-China trade tensions will ease and hopes major economies will take stimulus measures to ward off a possible economic slowdown, after falling earlier on concerns over future demand.
Brent crude settled 29 cents, or 0.5percent, higher at $60.03 a barrel, while U.S. crude rose 13 cents to $56.34 a barrel.
On local money markets, the bank reported that the Zambian Kwacha witnessed a slight depreciation due to continued demand for the greenback from importers.
The market was fairly quiet trading at K13.07/13.10 in the morning session before closing the day at K13.10/13.15 on the bid and offer respectively.
Near term, the local unit is anticipated to trade steady with factors of demand and supply being the main drivers of the currency’s next move factoring in corporates still converting for their salaries.
The liquidity levels in the market continued to decrease in Tuesday’s session from K205.34 million to K196.20 million with the volumes of funds traded on the interbank slightly increasing to K125 million from K85 million seen the previous day.
The daily weighted average interbank lending rate dropped to 10.52percent from 10.63 percent.
The market was subdued on Tuesday with yields remaining relatively unchanged.
