Copper Prices Slide Amid Market Volatility

Strategic Insights -

Copper futures slipped along with crude oil and other metals as equities were unable to sustain gains, giving investors pause about holding a bullish position in the red metal. The Comex May copper contract declined 4.35 cents, or 1.3%, to settle at $3.3680 a pound. Analysts attributed the pullback in copper prices to the inability of the US stock market to hold onto gains and the sell-off of commodities due to fund selling.

Key Takeaways:

  • Copper futures declined 4.35 cents, or 1.3%, to settle at $3.3680 a pound due to the inability of the US stock market to hold onto gains.
  • The decline in copper prices was also attributed to fund selling and the liquidation of bullish positions.
  • The Dow Jones Industrial Average was down 21.54 points, or 0.2%, at 10542.84 points, which pressured copper and other commodities.
  • Copper prices often track equities as a proxy for economic health since the metal is widely used in manufacturing.
  • The Comex May copper contract erased losses earlier in the day due to gains in crude oil and a pullback in the US dollar.
  • Inventories of copper stored in London Metal Exchange warehouses fell 700 metric tons Wednesday, leaving them at 538,175.

Statistics:

  • Comex May copper declined 4.35 cents, or 1.3%, to settle at $3.3680 a pound.
  • The Dow Jones Industrial Average was down 21.54 points, or 0.2%, at 10542.84 points.
  • Inventories of copper stored in London Metal Exchange warehouses fell 700 metric tons Wednesday, leaving them at 538,175.
  • The Comex inventory data remained unchanged at 102,192 short tons.

Sources:

  • Dow Jones Commodities News via Comtex, "Copper futures slide as equity market falters"
  • Matt Whittaker, Dow Jones Newswires, "Copper Prices Slide Amid Market Volatility"
  • Country Hedging, Sterling Smith, analyst, quoted in "Copper futures slide as equity market falters"
  • Lind-Waldock, Bob Haberkorn, senior market strategist, quoted in "Copper futures slide as equity market falters"
  • Olympus Futures, Charles Nedoss, senior market strategist, quoted in "Copper Prices Slide Amid Market Volatility"