MTECHTIPS:-Copper drops on caution over Fed, China Copper prices fell on Wednesday, due to caution over the Federal Reserves policy meeting and the health of Chinas property market.On the Comex division of the New York Mercantile Exchange, copper futures for May delivery fell to a session low of $2.931 a pound, the weakest level since March 17 Copper last traded at $2.936 a pound during European morning hours, down 0.51%, or 1.5 cents. The May copper contract eased down 0.02% on Tuesday to settle at $2.951 a pound. Futures were likely to find support at $2.921 a pound, the low from March 17 and resistance at $2.992 a pound, the high from March 18. Traders turned their attention to the Fed’s policy statement later in the session, amid expectations for a further reduction in its monthly bond buying program to $55 billion from the current $65 billion. The Fed meeting is to be followed by a press conference with Janet Yellen and the bank is also to publish its forecasts on inflation and economic growth. Meanwhile, sentiment continued to be weighed by concerns over the health of China’s property sector after real estate developer Zhejiang Xingrun reportedly defaulted on its debt on Tuesday. A cooler property sector not only weighs on demand for copper as construction material, but also dampens consumption from the home appliances sector. The industrial metal fell to $2.908 a pound on March 12, the lowest since July 2010, amid indications the Chinese economy could be running out of steam.
Posted on: Wed, 19 Mar 2014 12:26:17 +0000
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