London Metal Exchange (LME) copper ended 3 percent down in trading on Friday - and 6.8 percent lower in the past three days - as a resurgent dollar prompted fund selling in metals markets, industry sources said. Three-months copper prices closed Friday's trading at $3,002 a tonne, down $94 from Thursday's kerb close, and off a week's high kerb close of $3,223. The late slide in London copper spilled over to the COMEX copper market and knocked prices there down similarly.
At the COMEX division of the New York Mercantile Exchange, benchmark July copper closed with losses of 2.35 cents at $1.3525 a lb. It bottomed out late in the session at a level last seen on Feb. 9 at $1.3440, a nearly 2.5 percent decline on the day.
"Commodities in general seem to be in retreat with oil and the precious metals also declining along with the base metals," William Adams, analyst at BaseMetals.com said.
"A combination of slower than expected economic growth, rising interest rates and a strengthening dollar, seems to be dampening funds appetite for the commodities," he added.
The dollar's gains after Thursday's surprising strong US retail sales data was the catalyst for the latest decline.
"We hit sell-stops a number of times today and the mood of the market is still down, particularly with the dollar strengthening," a trader said.
"We have initial support at $2,950 and then $2,900, but if the dollar keeps on gaining, copper could easily slip further."
Roy Carson of LME broker Triland Metals said in a daily note: "The price needs to quickly regain the 200-day moving average on a closing basis to negate an activated projection towards $2,950 initially and then $2,850."
Recent deliveries of copper into China and industry figures this week that showed world refined copper supplies had swung into surplus from deficit had weighed on the market, analysts said.
Oil prices have also shed seven percent in two days, down at three month lows, and are now 17 percent below April's record highs as many investment funds sold off.
Precious metals markets were also depressed, with gold trading at a three-month low of $418.95 an ounce on Friday.
However, constructive economic data from the United States is theoretically supportive for metals as the country is the world's biggest metals consumer, implying steady demand.
The prospects for other metals, with the exception of nearby supply tightness in nickel and tin, was also bearish, dealers said.
Aluminium closed at $1,717, down $30, while zinc was at $1,224, down $20. Lead was at $925, down $9, while nickel was at $16,500, down $300 and with spot premiums at $1,050. Tin was at $8,050, down $90.
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