Investing.com - Copper futures fell to a two-month low during European morning hours on Monday, as investors shunned riskier assets amid uncertainty over the outcome of Tuesday’s U.S. presidential elections.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.454 a pound during European morning trade, slumping 0.8%.
Earlier in the day, prices fell by as much as 1% to hit a session low of USD3.449 a pound, the cheapest level since September 5.
Copper’s losses came as the U.S. dollar remained underpinned after Friday’s stronger-than-expected U.S. jobs report.
The U.S. Department of Labor said the economy added 171,000 jobs in October, beating forecasts for an increase of 125,000. The unemployment rate ticked up to 7.9% from 7.8% in September as more people re-entered the labor force.
But markets reacted negatively to the upbeat jobs report, amid concern the Federal Reserve might scale back its monetary easing measures to support growth.
The dollar index, which tracks the performance of the U.S. dollar against a basket of six other major currencies, was up 0.25% to trade at 80.85, the highest level since September 7.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Market players were now focusing on a series of important political events set to unfold later this week.
The U.S. presidential election takes place on Tuesday, with opinion polls indicating a dead heat between President Barack Obama and Republican challenger Mitt Romney.
If the election comes down to a thin margin in a swing state such as Ohio, the outcome could be delayed for days or weeks.
Investors will then turn their focus to the start of the Chinese Communist Party Congress on Thursday, where a once-in-a-decade leadership change is to take place.
Meanwhile, markets continued to eye developments surrounding Greece, amid doubts over whether the country’s parliament will approve a package of spending cuts and tax hikes in a vote on Wednesday.
Elsewhere on the Comex, gold for December delivery eased up 0.1% to trade at USD1,677.15 a troy ounce, while silver for December delivery shed 0.25% to trade at USD30.78 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.454 a pound during European morning trade, slumping 0.8%.
Earlier in the day, prices fell by as much as 1% to hit a session low of USD3.449 a pound, the cheapest level since September 5.
Copper’s losses came as the U.S. dollar remained underpinned after Friday’s stronger-than-expected U.S. jobs report.
The U.S. Department of Labor said the economy added 171,000 jobs in October, beating forecasts for an increase of 125,000. The unemployment rate ticked up to 7.9% from 7.8% in September as more people re-entered the labor force.
But markets reacted negatively to the upbeat jobs report, amid concern the Federal Reserve might scale back its monetary easing measures to support growth.
The dollar index, which tracks the performance of the U.S. dollar against a basket of six other major currencies, was up 0.25% to trade at 80.85, the highest level since September 7.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Market players were now focusing on a series of important political events set to unfold later this week.
The U.S. presidential election takes place on Tuesday, with opinion polls indicating a dead heat between President Barack Obama and Republican challenger Mitt Romney.
If the election comes down to a thin margin in a swing state such as Ohio, the outcome could be delayed for days or weeks.
Investors will then turn their focus to the start of the Chinese Communist Party Congress on Thursday, where a once-in-a-decade leadership change is to take place.
Meanwhile, markets continued to eye developments surrounding Greece, amid doubts over whether the country’s parliament will approve a package of spending cuts and tax hikes in a vote on Wednesday.
Elsewhere on the Comex, gold for December delivery eased up 0.1% to trade at USD1,677.15 a troy ounce, while silver for December delivery shed 0.25% to trade at USD30.78 a troy ounce.