LONDON: Copper slumped to a more than two-week low on Friday on tech sector fears while U.S. jobs data added to doubts over a potential cut to U.S. interest rates in December.
Benchmark three-month copper on the London Metal Exchange was down 0.4% at $10,700 a metric ton in official open-outcry trading, on course for a weekly decline of 1.3%.
The metal widely used in power, construction and manufacturing earlier touched a low of $10,607.50, its weakest since November 5.
“I think the main panic in markets relates to the selloff in crypto,” said Dan Smith at Commodity Market Analytics. “Bitcoin is falling like a stone and down about a third from the recent high. The danger is that this feeds into a death spiral for anybody that is overexposed.”
Bitcoin hit a seven-month low on Friday.
U.S. September jobs data, which had been delayed by the government shutdown, on Thursday showed stronger than expected growth in new hiring but a rise in the jobless rate to its highest in nearly four years.
“The fog around U.S. statistics has meant that the Fed is unlikely to cut rates in December,” Smith said, referring to the U.S. central bank. “This is resulting in some U.S. strength, which is bearish for metal markets.”
A stronger dollar makes dollar-denominated metals more expensive for holders of other currencies.
The LME complex was down across the board. Aluminium lost 0.8% to $2,792 a ton, tin was down 1% at $36,700, zinc retreated by 1.3% to $2,978 after notching a one-month low and lead fell by 0.8% to $1,994 after hitting a similar milestone.
Nickel ws down 0.4% at $14,450 a ton after sliding to its lowest in seven months. The metal used to make stainless steel and rechargeable batteries was down 2.8% for the week and heading for its worst week since April.
Comments
Comments are closed for this article.