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Copper rally pauses as investors book profits

Published 03/25/2015, 06:00 AM
Copper declines as investors book profits
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Investing.com - Copper prices declined for the first time in six sessions on Wednesday, as investors booked profits from a recent rally which took prices to the highest level in more than three months.

On the Comex division of the New York Mercantile Exchange, copper for May delivery dipped 1.7 cents, or 0.59%, to trade at $2.786 a pound during European morning hours.

Futures were likely to find support at $2.645, the low from March 20, and resistance at $2.914, the high from March 23.

A day earlier, copper tacked on 1.3 cents, or 0.48%, to settle at $2.803. The red metal touched $2.914 on Monday, the most since December 15.

Comex copper prices are up almost 8.5% in the five sessions leading up to Wednesday, amid speculation demand for the industrial metal will increase due to accommodative central bank policies in the U.S., Europe and China.

Elsewhere on the Comex, gold futures for April delivery shed 10 cents, or 0.01%, to trade at $1,191.30 a troy ounce, while silver futures for May delivery slumped 2.1 cents, or 0.12% to trade at $16.96 an ounce.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.3% to 97.14 early on Wednesday.

The greenback remained under pressure amid uncertainty over the path of U.S. monetary policy after the Federal Reserve downgraded its forecasts for growth and inflation and lowered its interest rate projections last week.

Later in the day, the U.S. was to publish data on durable goods orders for February as investors look for more clues over the strength of the economy.

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