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Comex, LME copper futures slip despite bright long-term outlook

 

COPPER ended lower overnight amid lingering concerns that prices have risen further than the fundamentals justify.

Expectations of a better long-term demand outlook and a weaker US dollar limited the losses.

Copper for December delivery on the New York Mercantile Exchange’s COMEX division shed 3.20 cents to settle at $2.9240 a lb.

Overnight, the benchmark December contract climbed to a one-week high at $2.9810, well within reach of its 2009 peak at $2.9895, and on its way toward the psychological $3.00 level.

Sterling Smith, an analyst for Country Hedging in Inner Grove Heights, Minnesota, said a strong technical backdrop on top of the weaker dollar would likely fuel the momentum through that key resistance level.

“I think this market has already gone through its pullback period, and I think we’re on our way back through $3.00,” he said, adding stop-loss buying between $3.00 and $3.02 should propel it further.

Copper for three-month delivery on the London Metal Exchange closed down $65 at $6,415 a tonne…read more at The Australian

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