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Copper futures in New York ended down over 2 percent on Wednesday, in sympathy with steep declines in the energy and precious metals markets, sources said.
"It was not copper-specific selling today. Everything took a hit today. Oil slid below $58 and gold started to slide, so we just followed suit," said one COMEX floor dealer.
Copper for December delivery ended the day down 7.70 cents, or 2.3 percent, at $3.2055 a lb on the New York Mercantile Exchange's COMEX division, after dealing from a new 10-1/2 week low at $3.1850 to $3.3550.
Dealers now placed new support in December copper at the July 24 low at $3.1450 all the way down to $3.00, while resistance continued to be seen at around $3.50. Spot October slipped 8.85 cents to its session low at $3.1980, while back month contracts closed down 5.05 to 7.70 cents.
COMEX final copper volume was estimated at 21,000 lots, more than the 15,354 lots recorded on Tuesday. COMEX copper futures opened with modest gains on some light bargain buying and short-covering following the previous session's sharp losses. But they failed to build on early gains and began their descent after weaker-than-expected US economic data reinforced concerns over a slowing economy.

Copyright Reuters, 2006

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