COMEX copper futures slipped Tuesday morning on a bout of technical selling a day after charging up a 4-month peak, but trimmed losses when a sharper-than-expected decline in US consumer spending data lifted the euro, traders said.
"There was a little bit of fund buying on the opening, arbitrageurs were selling it, and then after the buying dried up we dropped down to the lows on no volume. But when the personal spending data came out and the euro started to rally, we followed the euro," said one broker.
Active September copper was down 0.25 cent at $1.3030 a lb on the New York Mercantile Exchanges COMEX division, up from an early low of $1.2875. The session high was $1.3090 which lied well below the $1.3250 high hit Monday and a level last seen on April 2.
Spot August fell 1.10 cents to $1.2970 and next-most-active December lost 0.70 cent to $1.2660. After an initial burst, brokers said, the action slowed considerably. COMEX estimated 1000 am EDT (1400 GMT) volume at a moderate 3,000 lots.
When copper could not hold its ground at the highs carved out on Monday, traders said some short-term speculators decided to grab quick profits on Tuesday. Traders said they think it will take more impetus to shove copper above the high hit on Monday than is currently in the market.
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