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Copper falls to 2-week low before turning higher, tracking gold

Published 07/23/2015, 05:20 AM
Updated 07/23/2015, 05:20 AM
Copper futures turn higher after hitting 2-week low

Investing.com - Copper prices briefly hit a two-week low on Thursday, before bouncing higher, as gold rebounded from Wednesday's heavy losses.

Copper for September delivery on the Comex division of the New York Mercantile Exchange hit an intraday low of $2.407 a pound, a level not seen since July 8, before recovering to trade at $2.437 during European morning hours, up 0.9 cents, or 0.36%. A day earlier, copper tumbled 4.6 cents, or 1.88%, to close at $2.428.

Elsewhere, gold futures for August delivery climbed $11.20, or 1.03%, to trade at $1,102.70 a troy ounce, while silver futures for September delivery jumped 14.8 cents, or 1.05% to trade at $14.87 an ounce.

On Wednesday, gold fell to $1,085.60 before ending at $1,091.50, down $12.00, or 1.09%. Prices of the precious metal plunged to a five-year low of $1,080.00 on Monday.

Gold has been under heavy selling pressure in recent months amid speculation the Fed will raise interest rates for the first time in eight years as soon as September.

Gold, which yields nothing and costs money to hold, is seen as a less attractive investment during times of rising interest rates.

Meanwhile, demand for the U.S. dollar remained supported after data on Wednesday showed that existing home sales rose to an eight-and-a-half year high in June, boosting optimism over the health of the economy and supporting the case for a rate hike later this year.

U.S. existing home sales increased by 3.2% to 5.49 million units last month, compared to expectations for a 1.2% rise to 5.40 million units.

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The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 97.18, down 0.4% for the day.

The euro was higher after Greek lawmakers passed a second set of crucial reforms on Wednesday, leading the way to the country's third bailout.

A majority of Greek lawmakers voted in favor of a second set of reforms late Wednesday, signaling that negotiations on an €86 billion European Union bailout can begin. The country is aiming for a deal by the middle of next month.

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