Copper fell more than 3 percent on Wednesday, its most in nearly two months, swept up in a broader retreat of risk assets the day after minutes from the latest US Federal Reserve meeting dashed hopes for another round of monetary stimulus anytime soon. In New York, the COMEX May contract tumbled 12.85 cents or nearly 3.3 percent to settle at $3.7905 per lb, after dealing from $3.7890 to $3.8935.
After trading to within a percent of its 2012 peak on Tuesday, copper fell back toward the middle of a months-long trading range, but managed to hold above its 200-day moving average. LOGIC Advisors' O'Neill said the price drop now opened the door for a buying opportunity. COMEX volumes were a bit more active than they have recently been. Nearly 56,000 lots traded in late business, down about 11 percent from the 30-day norm, according to preliminary Thomson Reuters data.