LONDON: Copper prices pulled back on Thursday after five sessions of gains, as unease surrounding high interest rates curbing global growth offset optimism about an uptick of demand in top metals consumer China.
Three-month copper on the London Metal Exchange (LME) slipped 1.1% to $8,360 a metric ton by 1600 GMT after touching its highest since Aug. 10 on Wednesday.
US Comex copper futures dropped 1.1% to $3.77 a lb.
“These are corrective bounces that we’re seeing in a fairly neutral to bearish market, where you buy the dips and sell the rallies,” said independent consultant Robin Bhar.
Copper declined after failing to break through resistance at the 100-day moving average of $8,469, a technical level used by traders.
Short-covering by computer-driven funds had fuelled this week’s gains, while arbitrage selling contributed to Thursday’s losses, Al Munro at broker Marex said in a note.
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