COMEX copper futures trimmed losses from earlier nine-day lows on Friday but still closed lower on speculative selling, as the dollar gained after the monthly US payrolls report came in near forecasts.
"The dollar was the prod for the funds to get out," said one New York metals desk broker. "They'd been buying copper up like crazy on the basis of a weak dollar, and it stands to reason they would sell it on a strong dollar." "But you've got short-covering toward the close, and weekend book-squaring coupled with that. The market is pretty oversold and you are going to see some chart-based buying because of that."
Futures stayed stuck in a broad 15-cent trading range, however, holding between $1.20 a lb and $1.35, dealers said.
Copper on the COMEX division of the New York Mercantile Exchange closed early at around noon and will stay shut on Monday for the US Labour Day holiday, reopening Tuesday.
Benchmark December copper slipped 0.85 cent to $1.2395 a lb, after trading from $1.2545 to $1.22, touching its lowest since August 25. Spot September lost 0.70 to $1.2405, and back months were from down 0.85 to up 0.10 cent.