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Copper futures fall to 3-1/2-month low on Fed taper concerns

Published 11/19/2013, 04:30 AM
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Investing.com - Copper futures fell to a three-and-a-half-month low on Tuesday, as ongoing uncertainty over when the Federal Reserve will scale back its stimulus measures weighed on sentiment.

On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.148 a pound during European morning trade, down 0.05%.

Comex copper prices traded in a range between USD3.124 a pound, the daily low and the weakest level since August 1 and a session high of USD3.155 a pound.

The December contract settled 0.68% lower on Monday to end at USD3.149 a pound.

Copper prices were likely to find support at USD3.102 a pound, the low from August 1 and resistance at USD3.177 a pound, the high from November 18.

Investors are turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.

New York Fed President William Dudley said Monday he was growing more hopeful that the economy is improving, and added that the fiscal uncertainties that acted as a drag on growth are likely to abate in the coming months.

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.

Prices remained supported after China outlined proposals for a series of broad economic reforms, reinforcing investor confidence in the country.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere on the Comex, gold for December delivery inched up 0.15% to trade at USD1,273.90 a troy ounce, while silver for December delivery declined 0.1% to trade at USD20.33 a troy ounce.

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