Investing.com - Copper futures edged lower for the second consecutive day on Tuesday, as appetite for riskier assets weakened amid concerns the U.S. was moving closer to taking possible military action against Syria’s government.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.319 a pound during European morning trade, down 0.25%. The December contract settled 0.85% lower at USD3.327 a pound on Monday.
Nymex copper prices traded in a range between USD3.315 a pound, the session low and a daily high of USD3.358 a pound.
Copper prices were likely to find support at USD3.295 a pound, the low from August 22 and resistance at USD3.394 a pound, Monday’s high and the strongest level since June 5.
Speculation mounted that the U.S. and other Western nations will intervene in Syria in wake of allegations Bashar al-Assad’s government forces used chemical weaponry against civilians.
U.S. Secretary of State John Kerry said Monday that President Obama will hold Syria’s government accountable for using chemical weapons.
U.K. Foreign Secretary William Hague said the U.K. is convinced Assad was behind the chemical weapon attack and that there was agreement with the U.S. and France on the need to respond.
The geopolitical concerns prompted investors to shun riskier assets, such as stocks and commodities and move in to more traditional safe-haven assets like the U.S. dollar and the yen.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.16% to trade at 81.55.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Meanwhile, uncertainty over how soon the Federal Reserve will start to unwind stimulus measures continued after data on Monday showed that U.S. durable goods orders fell in July.
The Commerce Department said U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest decline since August 2012.
The data came after a report on Friday showed that U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.
The central bank is scheduled to meet September 17-18 to review the economy and assess policy.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere on the Comex, gold for December delivery rallied 1.35% to trade at USD1,411.80 a troy ounce, while silver for December delivery jumped 1.3% to trade at USD24.36.
Investors often buy gold and silver as refuges against political uncertainty.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.319 a pound during European morning trade, down 0.25%. The December contract settled 0.85% lower at USD3.327 a pound on Monday.
Nymex copper prices traded in a range between USD3.315 a pound, the session low and a daily high of USD3.358 a pound.
Copper prices were likely to find support at USD3.295 a pound, the low from August 22 and resistance at USD3.394 a pound, Monday’s high and the strongest level since June 5.
Speculation mounted that the U.S. and other Western nations will intervene in Syria in wake of allegations Bashar al-Assad’s government forces used chemical weaponry against civilians.
U.S. Secretary of State John Kerry said Monday that President Obama will hold Syria’s government accountable for using chemical weapons.
U.K. Foreign Secretary William Hague said the U.K. is convinced Assad was behind the chemical weapon attack and that there was agreement with the U.S. and France on the need to respond.
The geopolitical concerns prompted investors to shun riskier assets, such as stocks and commodities and move in to more traditional safe-haven assets like the U.S. dollar and the yen.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.16% to trade at 81.55.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Meanwhile, uncertainty over how soon the Federal Reserve will start to unwind stimulus measures continued after data on Monday showed that U.S. durable goods orders fell in July.
The Commerce Department said U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest decline since August 2012.
The data came after a report on Friday showed that U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.
The central bank is scheduled to meet September 17-18 to review the economy and assess policy.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere on the Comex, gold for December delivery rallied 1.35% to trade at USD1,411.80 a troy ounce, while silver for December delivery jumped 1.3% to trade at USD24.36.
Investors often buy gold and silver as refuges against political uncertainty.