US copper futures rallied over 4 percent early on Tuesday morning, driven by dollar weakness and bargain buyers, many of whom took advantage of Monday's steep sell-off to re-establish positions below $3.00 per lb, traders said.
Copper for July delivery climbed 12.05 cents, or 4.1 percent, to $3.0525 per lb by 10:36 am EDT (1436 GMT) on the New York Mercantile Exchange's COMEX division. Range from $2.99 to $3.0690. COMEX estimated copper futures volume at 17,167 lots by 9 am. Copper up in recovery rally from oversold conditions. Key technical support seen at $2.8525, said Larry Young, senior trader at Infinity Futures Inc in Chicago.
On Monday, July copper tumbled over 6 percent to hit a session trough at $2.92 - a low not seen since February 8, as mounting fiscal problems in Europe and a potential slowdown in China's economy led the drag. Monday's sell-off centered on tightening measures in world's top copper consumer China, and their impact on demand growth.
Comments
Comments are closed.