Investing.com - Copper futures declined on Wednesday to trade near a one-week low, as a partial U.S. government shutdown dragged on into a second week, with few signs of progress towards a resolution ahead of an October 17 deadline to avoid a U.S. sovereign default.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.268 a pound during European morning trade, down 0.75%.
Copper prices fell to a session low of USD3.259 a pound earlier, the weakest level since October 4. The December contract settled 0.12% lower at USD3.292 a pound on Tuesday.
Copper prices were likely to find support at USD3.249 a pound, the low from October 1 and resistance at USD3.321 a pound, the high from October 8.
Investors continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
President Barack Obama repeated Tuesday that he is willing to negotiate with congressional Republicans on spending cuts, but only after the government is reopened and the debt limit is raised.
Copper prices came under additional pressure after the International Monetary Fund lowered its 2013 growth forecast for China to 7.6% from a previous estimate of 7.8%.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Global growth for this year was trimmed to 2.9%, compared to a previous forecast of 3.1%.
Meanwhile, a White House official said Tuesday that President Obama will nominate Janet Yellen as the next Federal Reserve chairman. The announcement is scheduled for 3pm ET on Wednesday.
Yellen is perceived as being more likely to maintain the Fed’s current accommodative monetary policy stance.
Copper traders were looking ahead to the minutes of the central bank’s most recent policy-setting meeting for further clues on the direction of U.S. monetary policy.
The Fed took markets by surprise last month with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
The shutdown has halted the release of U.S. economic data, including the closely-watched payrolls report for September, fuelling speculation the Fed will hold off on any move to scale back its stimulus program.
Elsewhere on the Comex, gold for December delivery fell 1.05% to trade at USD1,310.70 a troy ounce, while silver for December delivery lost 1.4% to trade at USD22.13 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.268 a pound during European morning trade, down 0.75%.
Copper prices fell to a session low of USD3.259 a pound earlier, the weakest level since October 4. The December contract settled 0.12% lower at USD3.292 a pound on Tuesday.
Copper prices were likely to find support at USD3.249 a pound, the low from October 1 and resistance at USD3.321 a pound, the high from October 8.
Investors continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
President Barack Obama repeated Tuesday that he is willing to negotiate with congressional Republicans on spending cuts, but only after the government is reopened and the debt limit is raised.
Copper prices came under additional pressure after the International Monetary Fund lowered its 2013 growth forecast for China to 7.6% from a previous estimate of 7.8%.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Global growth for this year was trimmed to 2.9%, compared to a previous forecast of 3.1%.
Meanwhile, a White House official said Tuesday that President Obama will nominate Janet Yellen as the next Federal Reserve chairman. The announcement is scheduled for 3pm ET on Wednesday.
Yellen is perceived as being more likely to maintain the Fed’s current accommodative monetary policy stance.
Copper traders were looking ahead to the minutes of the central bank’s most recent policy-setting meeting for further clues on the direction of U.S. monetary policy.
The Fed took markets by surprise last month with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
The shutdown has halted the release of U.S. economic data, including the closely-watched payrolls report for September, fuelling speculation the Fed will hold off on any move to scale back its stimulus program.
Elsewhere on the Comex, gold for December delivery fell 1.05% to trade at USD1,310.70 a troy ounce, while silver for December delivery lost 1.4% to trade at USD22.13 a troy ounce.