Copper fell nearly 1.5 percent by the close of trade on the London Metal Exchange (LME) on Monday on profit-taking prompted by the dollar's recovery, traders and analysts said. Three-months copper closed $44 lower at $3,198 a tonne from Friday's London kerb close, with the premium of the cash price over metal for delivery in three months at $114/116. "We are coming to the end of the quarter, the funds are long, so there is a chance that they will take profits," Standard Bank, London, analyst told Reuters.
"The close below $3,200 could precipitate selling as some investors get out of stale positions, but a bounce from here would mean a stay of execution of the technical correction we are due," Bhar said.
The dollar scored gains versus other major currencies as investors bought back the greenback following its slide after poor US trade number on Friday.
Copper peaked early last week on LME Select, the exchange's screen-trading platform, at an all-time high of $3,300. The high in inter-office and ring trade was $3,297.
Another trader put support for copper at $3,175/3,185, with resistance at $3,260/3,300.
Broker Macquarie Bank said on Monday that open interest on the LME has risen sharply in recent weeks, which with surging prices suggests fresh investment-fund buying has taken place.
Aluminium was down $18 at $1,972, but supported by another 3,550-tonne decline in LME stocks.
Zinc was down $13 at $1,427 and lead lost $10 to $968. Nickel was $225 lower at $15,850 and tin fell $65 to $8,525.
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