Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Copper futures drop as profit taking, U.S. debt concerns weigh

Published 01/07/2013, 04:56 AM
Updated 01/07/2013, 04:56 AM

Investing.com - Copper futures declined during European morning hours on Monday, as focus remained squarely on the U.S. economic outlook and how U.S. lawmakers will deal with the upcoming debt ceiling debate.

Some profit taking also contributed to losses, after New York-traded copper prices rallied to the highest level since mid-October last week.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.666 a pound during European morning trade, down 0.75% on the day.

New York-traded copper prices fell by as much as 1% earlier in the session to hit a daily low of USD3.657 a pound. Futures rose to USD3.758 on January 3, the strongest level since October 18.

Copper futures rallied last week after U.S. lawmakers passed a last-minute bill to avoid the fiscal cliff, a series of looming tax increases and spending cuts that could have pushed the U.S. economy back into a recession.

Focus was expected to remain on the U.S. economy, as investors remained jittery over the longer term fiscal outlook, with negotiations on raising the U.S. debt ceiling still to come in February.

On Friday, the U.S. Department of Labor said the economy added 155,000 jobs in December, easing from an increase of 161,000 in November, suggesting that the recovery in the labor market may be slowing. The unemployment rate held steady at 7.8%.

The jobs report came one day after the minutes of the Federal Reserves’ December policy meeting showed that some policymakers considered an earlier-than-expected end to the bank’s quantitative easing program.

A strengthening U.S. dollar contributed to losses. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.2% to trade at 80.77.

A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.

Elsewhere on the Comex, gold for February delivery added 0.3% to trade at USD1,654125 a troy ounce, while silver for March delivery rose 0.6% to trade at USD30.12 a troy ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.