COMEX copper prices reversed early gains on Thursday and fell sharply when stop-loss sell orders were triggered, as few players wanted to get caught long in a falling market before a 3-day weekend, traders said.
The COMEX exchange and many US financial markets will be closed on Friday for former President Ronald Reagan's funeral.
A worsening inflation reading caused some already jittery copper holders to exit long positions, which in turn set off a series of stop-loss sell orders and drew in massive selling.
"Once prices backed off and took out yesterday's low, we started coming into some stop-loss paper," said one dealer.
Active July copper slid 2.25 cents to $1.1420 a lb., in a range from $1.11215 to $1.1770 - after plummeting about 6 percent on Wednesday.
Spot June slipped 2.75 cent to $1.1400 a lb. The rest were down from 0.50 cent to 3.25 cents. COMEX estimated 10 am EDT volume at 6,000 lots.
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