Investing.com - Copper futures came under heavy selling pressure during European morning trade on Tuesday, as ongoing concerns over political uncertainty in Greece weighed after initial attempts to form a coalition government collapsed, following weekend elections.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.705 a pound during European morning trade, tumbling 1.8%.
It earlier fell by as much as 2.1% to trade at a session low of USD3.697 a pound.
Markets were watching developments in Greece as political leaders continued to hold cross party talks after the country’ largest party, New Democracy, was unable to reach an agreement to form a government on Monday.
The task now falls on Alexis Tsipras, the head of Syriza, the country’s second-biggest party. But he indicated late Monday that a coalition could not be formed, as the differences between the various parties who won seats in the weekend elections are too wide.
The uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely.
The Financial Times reported earlier that New Greek elections could come as early as June 17, if a coalition cannot be agreed in the next few days.
Investors were also jittery amid concerns over new French president-elect, Socialist Francois Hollande who has said he wants to renegotiate the euro zone’s fiscal pact in order to stimulate growth in the region.
Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
The heightened sense of risk aversion prompted investors to shun riskier assets, such as stocks and industrial commodities, and flock to the relative safety of the U.S. dollar.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.25% to trade at 79.91.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Lingering fears over the health of the global economy also weighed, following a recent run of poor global macroeconomic data.
Copper is sensitive to the global growth outlook because of its widespread uses across industries. The industrial metal is regarded as a leading indicator of the global economy.
Elsewhere on the Comex, gold for June delivery fell 0.65% to trade at USD1,628.55 a troy ounce, while silver for July delivery tumbled 1.4% to trade at a four-month low of USD29.70 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.705 a pound during European morning trade, tumbling 1.8%.
It earlier fell by as much as 2.1% to trade at a session low of USD3.697 a pound.
Markets were watching developments in Greece as political leaders continued to hold cross party talks after the country’ largest party, New Democracy, was unable to reach an agreement to form a government on Monday.
The task now falls on Alexis Tsipras, the head of Syriza, the country’s second-biggest party. But he indicated late Monday that a coalition could not be formed, as the differences between the various parties who won seats in the weekend elections are too wide.
The uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely.
The Financial Times reported earlier that New Greek elections could come as early as June 17, if a coalition cannot be agreed in the next few days.
Investors were also jittery amid concerns over new French president-elect, Socialist Francois Hollande who has said he wants to renegotiate the euro zone’s fiscal pact in order to stimulate growth in the region.
Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
The heightened sense of risk aversion prompted investors to shun riskier assets, such as stocks and industrial commodities, and flock to the relative safety of the U.S. dollar.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.25% to trade at 79.91.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Lingering fears over the health of the global economy also weighed, following a recent run of poor global macroeconomic data.
Copper is sensitive to the global growth outlook because of its widespread uses across industries. The industrial metal is regarded as a leading indicator of the global economy.
Elsewhere on the Comex, gold for June delivery fell 0.65% to trade at USD1,628.55 a troy ounce, while silver for July delivery tumbled 1.4% to trade at a four-month low of USD29.70 a troy ounce.