Copper fell on Thursday as the market set back after a three-day rally, despite supportive news that the European Central Bank will undertake an aggressive bond-buying program to help struggling euro zone countries. Copper broke ranks with global equities and the euro, but remained near six-week highs.
ECB President Mario Draghi said the central bank would undertake unlimited, short-dated bond purchases to keep borrowing costs down for Spain, Italy and other struggling countries. "Draghi came out and disappointed the market because they did not provide an interest rate cut. Then he offered up what we kind of already knew, that these bond purchasing programs are likely and are going to occur," said Bart Melek, head commodity strategist with TD Bank Financial Group.
"Still, a $3.50 (per lb) copper price is not too bad." COMEX copper for December delivery fell 1.25 cents to settle at $3.5165 per lb, after dealing between $3.4925 and $3.5390, its highest level since July 19. COMEX trading volumes reached 56,000 lots in late New York business, more than a quarter above the 30-day norm, according to preliminary Thomson Reuters data.
Copper also had a muted reaction to US data that showed the number of Americans filing new claims for jobless benefits fell last week to its lowest level in a month and private employers added a stronger-than-expected 201,000 jobs in August.