Copper futures in New York advanced at the open on Wednesday, garnering some strength from the slight rebound in the energy and precious metals prices, sources said.
"More than anything else, we think the metal markets are becoming unhinged by the goings-on in the oil markets. In these times of intertwined markets and huge fund flows, we find the correlation's between various markets to be very high, and when a critical market like energy starts selling off, there are bound to be ramifications on base metals, as funds pare positions and/or adjust margin requirements," said Edward Meir, metals analyst with Man Financial.
By 10:28 am, EDT (1428 GMT), copper for December delivery was up 0.75 cent at $3.3805 a lb on the New York Mercantile Exchange's COMEX division, ranging between $3.33 and $3.43.
Technicians pegged support in December copper at $3.3350, and then at $3.2650, while resistance was seen at the $3.50 level. Spot September gained 3.95 cents at its morning peak at $3.43. COMEX copper volume at 10:00 am was estimated at a modest 3,000 lots.
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