COMEX copper prices launched a steep advance at the open to mirror London copper, then pulled back to post more modest gains when the dollar rose in reaction to a healthy US jobless claims report, traders said.
Strong overnight buying in the Chinese market advanced copper overnight, then sent London copper higher, and the buying spilled over to the New York market. But, after the initial spurt of buying, the action slowed to a trickle.
"There was some Chinese short-covering. That's what started it in China and then it pyramided in London. But were very quiet right now. There's a lot of uncertainty in the market. Looks like the economy may be slowing down. Everybody's very nervous about any talk about terrorism," said one copper trader, adding the skittish nature of those in market has quelled buying.
With August traditionally a holiday month, business has slowed and prices are seen consolidating in a mostly sideways pattern roughly between $1.25 and the recent four-month high at $1.3250 a lb for September futures.
Active September copper was up 0.15 cent at $1.2960 a lb on the New York Mercantile Exchanges COMEX division, after rallying early in the session to a high at $1.3140. The overnight low was $1.29 a lb.
Spot August copper was even at $1.2980 a lb. Next most-active December futures rose 0.15 cent to $1.27.
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