Investing.com - Copper futures fell sharply to hit a five-week low on Tuesday, as uncertainty over the direction of U.S. monetary policy and lingering concerns over China’s economic outlook weighed on demand for the industrial metal.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.206 a pound during European morning trade, down 1.1% on the day.
New York-traded copper prices fell by as much as 1.2% earlier in the session to hit a daily low of USD3.203 a pound, the weakest level since May 3.
Speculation that the Federal Reserve will begin to taper its asset purchase program continued following last week’s upbeat U.S. jobs data and after ratings agency Standard & Poor’s revised its long-term outlook on the U.S. credit rating to stable from negative on Monday, citing an improving economic outlook.
Meanwhile, investors continued to digest China’s weak trade data over the weekend, which pointed to slowing demand from the world’s largest copper consumer.
China’s industrial output rose by a less-than-forecast 9.2% in May from a year earlier.
A separate report showed that Chinese exports rose at the slowest pace in almost a year in May, up 1%, well below expectations for gains of 7.3%.
The trade data showed that imports of key materials for construction like copper and copper products were lower by 14.5% from a year ago.
Elsewhere on the Comex, gold for August delivery lost 1.2% to trade at USD1,369.45 a troy ounce, while silver for July delivery tumbled 1.6% to trade at USD21.58 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.206 a pound during European morning trade, down 1.1% on the day.
New York-traded copper prices fell by as much as 1.2% earlier in the session to hit a daily low of USD3.203 a pound, the weakest level since May 3.
Speculation that the Federal Reserve will begin to taper its asset purchase program continued following last week’s upbeat U.S. jobs data and after ratings agency Standard & Poor’s revised its long-term outlook on the U.S. credit rating to stable from negative on Monday, citing an improving economic outlook.
Meanwhile, investors continued to digest China’s weak trade data over the weekend, which pointed to slowing demand from the world’s largest copper consumer.
China’s industrial output rose by a less-than-forecast 9.2% in May from a year earlier.
A separate report showed that Chinese exports rose at the slowest pace in almost a year in May, up 1%, well below expectations for gains of 7.3%.
The trade data showed that imports of key materials for construction like copper and copper products were lower by 14.5% from a year ago.
Elsewhere on the Comex, gold for August delivery lost 1.2% to trade at USD1,369.45 a troy ounce, while silver for July delivery tumbled 1.6% to trade at USD21.58 a troy ounce.