US MIDDAY: copper plunges

14 Jun, 2006

COMEX copper futures opened down over 3 percent early on Tuesday, hitting a seven-week low, as a firmer dollar and concerns over slowing economic growth triggered a widespread sell-off in metals markets, sources said.
The breakdown of key technical support levels and ongoing investor risk aversion should continue to depress prices amid increased volatility in the market, they added.
By 10:20 am EDT (1420 GMT), copper for July delivery slipped 9.85 cents, or 3.05 percent, at $3.13 a lb, on the New York Mercantile Exchange's (NYMEX) COMEX division, after tumbling to an earlier low at $3.0750, its weakest level since April 25. Spot June fell 10.85 cents to $3.22, dealing in an early $3.18-$3.2850 trading band. COMEX copper volume at 9:00 am was estimated at 4,000 lots.

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