Investing.com - Copper futures tumbled to the lowest level since August on Wednesday, after a top-level Communist Party meeting disappointed investors and amid growing speculation the Federal Reserve will begin tapering its asset purchase program at its December policy meeting.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.191 a pound during European morning trade, down 1.35%.
Comex copper prices fell to a session low of USD3.186 a pound earlier, the weakest level since August 8.
The December contract settled 0.78% lower on Tuesday to end at USD3.234 a pound.
Copper prices were likely to find support at USD3.174 a pound, the low from August 8 and resistance at USD3.258 a pound, the high from November 12.
Copper traders were disappointed with the lack of concrete details on policy reforms announced at China's Third Plenum meeting, which concluded on Tuesday.
Leaders pledged to let markets play a decisive role in the economy over the next decade, but no further details were provided.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, growing speculation the Federal Reserve will begin tapering its asset purchase program at its December policy meeting also weighed.
Atlanta Fed President Dennis Lockhart said Tuesday that the central bank could begin to reduce the pace of its bond-buying program as soon as December.
Dallas Fed President Richard Fisher also warned about a stimulus reduction, saying “at some point we will have to taper.”
Last week’s stronger than forecast U.S. nonfarm payrolls report prompted investors to bring forward expectations for a reduction in the Fed’s USD85 billion-a-month asset purchase program.
Investors were turning their attention to Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve, for indications on the future course of U.S. monetary 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 inched up 0.35% to trade at USD1,275.40 a troy ounce, while silver for December delivery was little changed to trade at USD20.77 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.191 a pound during European morning trade, down 1.35%.
Comex copper prices fell to a session low of USD3.186 a pound earlier, the weakest level since August 8.
The December contract settled 0.78% lower on Tuesday to end at USD3.234 a pound.
Copper prices were likely to find support at USD3.174 a pound, the low from August 8 and resistance at USD3.258 a pound, the high from November 12.
Copper traders were disappointed with the lack of concrete details on policy reforms announced at China's Third Plenum meeting, which concluded on Tuesday.
Leaders pledged to let markets play a decisive role in the economy over the next decade, but no further details were provided.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, growing speculation the Federal Reserve will begin tapering its asset purchase program at its December policy meeting also weighed.
Atlanta Fed President Dennis Lockhart said Tuesday that the central bank could begin to reduce the pace of its bond-buying program as soon as December.
Dallas Fed President Richard Fisher also warned about a stimulus reduction, saying “at some point we will have to taper.”
Last week’s stronger than forecast U.S. nonfarm payrolls report prompted investors to bring forward expectations for a reduction in the Fed’s USD85 billion-a-month asset purchase program.
Investors were turning their attention to Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve, for indications on the future course of U.S. monetary 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 inched up 0.35% to trade at USD1,275.40 a troy ounce, while silver for December delivery was little changed to trade at USD20.77 a troy ounce.