Investing.com - Copper futures were little changed near the previous session’s six-week high during European morning hours on Tuesday, as traders continued to focus on talks in Washington to avert the fiscal cliff of spending cuts and tax hikes.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.659 a pound during European morning trade, flat on the day.
New York-traded copper prices traded in a range between USD3.634 a pound, the daily low and a session high of USD3.661 a pound. New York-traded copper prices touched a six-week high of USD3.667 a pound on Monday.
Weakness in the dollar lent support to prices. The euro hit a fresh six-week high against the greenback, while the dollar index was down 0.15% to trade at 79.78, the weakest level since October 23.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Markets participants continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the four weeks left before the deadline.
There are fears that U.S. lawmakers will repeat the same political divisiveness that led Standard & Poor's to downgrade the U.S.’s AAA rating in August 2011 and tip the country back into a recession.
Market sentiment soured on Monday after data revealed U.S. manufacturing activity unexpectedly contracted in November to its lowest level in more than three years.
The Institute for Supply Management said that its index of national factory activity fell to 49.5 in November, the weakest since July 2009.
Meanwhile, in the euro zone, finance ministers from the European Union were to hold talks in Brussels later Tuesday.
On Monday, Greece launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion.
In addition, Spanish bond yields turned lower after Madrid formally requested a bailout to recapitalize its banking sector.
Elsewhere on the Comex, gold for February delivery fell 0.8% to trade at USD1,707.35 a troy ounce, while silver for March delivery dropped 1.2% to trade at USD33.35 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.659 a pound during European morning trade, flat on the day.
New York-traded copper prices traded in a range between USD3.634 a pound, the daily low and a session high of USD3.661 a pound. New York-traded copper prices touched a six-week high of USD3.667 a pound on Monday.
Weakness in the dollar lent support to prices. The euro hit a fresh six-week high against the greenback, while the dollar index was down 0.15% to trade at 79.78, the weakest level since October 23.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Markets participants continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the four weeks left before the deadline.
There are fears that U.S. lawmakers will repeat the same political divisiveness that led Standard & Poor's to downgrade the U.S.’s AAA rating in August 2011 and tip the country back into a recession.
Market sentiment soured on Monday after data revealed U.S. manufacturing activity unexpectedly contracted in November to its lowest level in more than three years.
The Institute for Supply Management said that its index of national factory activity fell to 49.5 in November, the weakest since July 2009.
Meanwhile, in the euro zone, finance ministers from the European Union were to hold talks in Brussels later Tuesday.
On Monday, Greece launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion.
In addition, Spanish bond yields turned lower after Madrid formally requested a bailout to recapitalize its banking sector.
Elsewhere on the Comex, gold for February delivery fell 0.8% to trade at USD1,707.35 a troy ounce, while silver for March delivery dropped 1.2% to trade at USD33.35 a troy ounce.