The price of copper fell to a 3-year low in New York futures trade early Wednesday as investor confidence crumbled in the face of a stronger dollar and fears of a global recession. Copper for December delivery dove as low as $1.8510 a lb on the New York Mercantile Exchange's COMEX division, a drop of 7.8 percent, to its lowest level since late November 2005.
By 10:24 am EDT (1424 GMT), the benchmark contract was down 13.65 cents at $1.8705. December copper's close below its contract low on Tuesday seen as a bearish momentum indicator, opening the door to another leg lower, with next level of support on the monthly chart at $1.50 - Ralph Preston, futures analyst with HeritageWestFutures.com in San Diego, California.
Spot October tumbled 12.40 cents to $1.8830. COMEX estimated futures volume at 5,576 by 9 am Copper's losses deepened below the $2.00 level early Wednesday as economic growth concerns, particularly in China, trigger fears of global demand destruction for industrial materials, said analysts.
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