Copper Prices Fall on New Global Economic Crisis Fears

October 04 00:00 2011

New York, October 4 (RainbowNewsLine.com) – Fresh concerns regarding the Greek debt crisis pulled down copper prices Monday, notwithstanding improvements in US manufacturing, auto sales and construction spending. It was down less than 1 percent by the end of the day along with other commodities except gold, silver and wheat.

The economic data cheered the investors but they focused their attention more on broader concerns regarding U.S. and European economies and China’s growth. The manufacturing index of the Institute for Supply Management, a trade group, rose to 51.6 in September.

After Greece admitted that it will miss deficit reduction targets that it had agreed to as part of a deal to receive another round of emergency funding, the reports regarding the commodity prices and improvements in U.S. performances were released.

Dave Meger, vice president of metals trading at Vision Financial Markets said that “The macroeconomic situation continues to be … the prevailing factor in this market,” and added that “You’ll see titbits that change the picture slightly but, all in all, it’s the same focus on the economy, focus on European sovereign debt, and focus on concerns about China’s growth.”

Copper ended at $3.1505 a pound on December delivery after falling 0.15 cent and after it had fallen as low as $2.99 a pound. January platinum fell $6.50 to finish at $1,517.10 an ounce and December palladium dropped $20.80 to $593.75 an ounce. However gold and silver both increased.

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