SHANGHAI, Aug. 5 (SMM) – US Federal Reserve Bank of Atlanta Chairman Lockhart’s hawkish speech boosted the case for US Fed’s interest rate hike in September. As a result, US dollar index increased. Chinese stocks fell and base metals were depressed August 5.
For night trading Tuesday, SHFE 1510 lead ended RMB 185 higher at RMB 12,945/mt.
SHFE lead remained range-bound between RMB 12,900-12,940/mt during Wednesday trading session and finally closed at RMB 12,920/mt, jumping RMB 160/mt. Trading volumes were 4,262 lots. Positions grew 456 to 17,806.
Growing shorts and weakening market confidence will limit further price hikes in SHFE lead. Strong resistance also emerges at the 60-day moving average.