Investing.com - Copper futures fell sharply on Wednesday, as the U.S. moved closer to a deadline to raise the national debt ceiling or risk default.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.269 a pound during European morning trade, down 1.15%.
Copper prices fell to a session low of USD3.266 a pound earlier in the day. The December contract settled 0.14% higher at USD3.307 a pound on Tuesday.
Copper prices were likely to find support at USD3.244 a pound, the low from October 14 and resistance at USD3.315 a pound, the high from October 14.
On Tuesday, Fitch ratings agency placed its AAA-rating on the U.S. on “rating watch negative” and said a downgrade is possible.
The ratings agency said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
Copper traders also looked ahead to a raft of Chinese economic data on Friday.
The Asian nation is scheduled to release a government report on third quarter gross domestic product, with economists predicting growth of 7.8%. The country will also release data on industrial production and retail sales figures for September.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Trade data over the weekend showed that inbound Chinese copper shipments totaled 457,847 metric tons last month, the highest since March 2012. The figure was nearly 18% higher than copper imports in the previous month.
Elsewhere on the Comex, gold for December delivery inched up 0.2% to trade at USD1,275900 a troy ounce, while silver for December delivery dipped 0.2% to trade at USD21.15 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.269 a pound during European morning trade, down 1.15%.
Copper prices fell to a session low of USD3.266 a pound earlier in the day. The December contract settled 0.14% higher at USD3.307 a pound on Tuesday.
Copper prices were likely to find support at USD3.244 a pound, the low from October 14 and resistance at USD3.315 a pound, the high from October 14.
On Tuesday, Fitch ratings agency placed its AAA-rating on the U.S. on “rating watch negative” and said a downgrade is possible.
The ratings agency said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
Copper traders also looked ahead to a raft of Chinese economic data on Friday.
The Asian nation is scheduled to release a government report on third quarter gross domestic product, with economists predicting growth of 7.8%. The country will also release data on industrial production and retail sales figures for September.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Trade data over the weekend showed that inbound Chinese copper shipments totaled 457,847 metric tons last month, the highest since March 2012. The figure was nearly 18% higher than copper imports in the previous month.
Elsewhere on the Comex, gold for December delivery inched up 0.2% to trade at USD1,275900 a troy ounce, while silver for December delivery dipped 0.2% to trade at USD21.15 a troy ounce.