LME Aluminium gains support from a weak dollar and rising oil prices

<p>LME Aluminium reversed its downward trend as two major macroeconomic factors- the US dollar index and oil prices gave support. The US dollar index dropped to 100&nbsp; from highs after Italian vote and oil soared more than 10 per cent on Wednesday to over $50 a barrel- its highest in a month, helping LME aluminium prices rise. The contract which traded at around US$1,715/mt on Friday, last week, rose higher by 0.75 per cent to close at US$1,728/mt on Monday, November 5. <br /><br />Shanghai Metals Market says, LME aluminium should strengthen further and move at US$1,715-1,740/mt on Tuesday. <br /><br />As on November 5, LME official stock of aluminium stood at 2139275mt, Total Live Warrants was recorded at 1384875mt Cancelled Warrant was at 744325mt. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/LME%20Aluminium%20(3).jpg" alt="News" width="517" height="226" /><br />In China, aluminium traded on Shanghai Metal Exchange opened at US$2,002/mt on Tuesday, down 0.39 per cent from yesterday's opening price of US$2,002/mt. <br /><br />Aluminium on Shanghai Futures Exchange- SHFE 1702 aluminium outperformed other base metals recently. According to SMM study, the contract will likely find support at the 40-day moving average but will be refrained by weak fundamentals. So, SHFE 1702 aluminium is predicted to range between RMB 13,200-13,400/mt on Tuesday.<br /><br />Spot aluminium price in China's domestic market should trade at discounts of RMB 20/mt to premiums of RMB 20/mt, says SMM.<br /><br />{googleAdsense}<br /><br />SHFE aluminium is expected to firm up under the effect of a weak dollar on Tuesday, SMM foresees. <br /><br />&ldquo;US reported a slew of positive economic data, but the dollar remains weak, and this is expected to support base metal prices,&rdquo; SMM says.</p>