SHANGHAI, Nov. 13 (SMM) – The news front was quiet Monday. Investors generally kept cautious before the President Obama and the US Congress conducted negotiations on the “fiscal cliff”. With the US dollar index suffering resistance at 81, LME copper prices also got a rest in the US and European trading session after stopping falling in Asian trading hours, and increased at the tail of trading following some purchases. LME copper prices finally ended at a recent high of USD 7,654/mt, a gain of USD 78/mt, and recouping the 5-day moving average. 

Caution will continue to dominate markets. LME copper prices will still need to test support at the 5-day moving average, with pressure at the 10-day moving average. But LME copper prices will still lurch higher compared with the previous trading day, and move between USD 7,620-7,690/mt during Tuesday's Asian trading hours. Domestic A-shares will remain strong. SHFE copper prices will fluctuate after starting up, and SHFE 1302 copper contract will hover in the RMB 55,500-56,200/mt range. Shanghai spot copper offers are estimated between discounts of negative RMB 50/mt and premiums of positive RMB 50/mt versus SHFE 1211 copper contract.