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Copper prices fall to 6-week low ahead of U.S. employment data

Published 06/04/2015, 04:57 AM
Copper futures slump to 6-week low
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Investing.com - Copper prices fell to the lowest level in six weeks on Thursday, as traders eyed the release of key U.S. employment data for fresh indications on the timing of a rate increase.

On the Comex division of the New York Mercantile Exchange, copper for July delivery hit an intraday low of $2.697, a level not seen since April 24, before trading at $2.703 during European morning hours, down 2.4 cents, or 0.87%.

A day earlier, copper prices lost 0.9 cents, or 0.35%, to close at $2.726. Futures were likely to find support at $2.660, the low from April 23, and resistance at $2.749, the high from June 3.

Market participants were looking to the weekly report on U.S. jobless claims due later in the day, as well as Friday's nonfarm payrolls data for further indications on the strength of the country's job market.

On Wednesday, payroll processing firm ADP said U.S. non-farm private employment rose by 201,000 last month, just above expectations for an increase of 200,000.

The upbeat data raised hopes that the economy was regaining strength after contracting in the first quarter, fuelling speculation that the Federal Reserve could raise rates as soon as September.

Meanwhile, developments surrounding talks between Greece and its international creditors remained in focus.

Greek Prime Minister Alexis Tsipras rejected on Wednesday proposals by European leaders and the International Monetary Fund to help unlock more aid.

Athens has to make four payments totaling more than €1.5 billion to the IMF this month. Tsipras indicated that Greece won’t miss the first installment due Friday.

Elsewhere, gold futures for August delivery dipped $2.30, or 0.19%, to trade at $1,182.60 a troy ounce, while silver futures for July delivery shed 5.7 cents, or 0.35% to trade at $16.42 an ounce.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.5% at 94.89, the weakest level since May 19.

The euro pushed higher against the U.S. dollar, climbing above the 1.13-level, as soaring German Bund yields provided support.

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