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10 Feb 2015
Copper plunges about 2% on China slowdown worries
FXStreet (Mumbai) - Copper prices on Comex sank to fresh weekly lows today after disappointing recent Chinese data raised concerns over demand from the world’s top metal consumer, China.
Chinese data weigh
The red metal trades at 2.537 levels, recording a -1.72% loss on the day, having previously posted day’s low at 2.530 and day’s high at 2.588 levels. Copper prices extended losses after bearish Chinese trade balance and inflation data highlighted persistent weakness in the economy, dampening the demand for the Industrial metal. Moreover, traders continued to wind up positions ahead of the Lunar New Year holidays next week.
Further, rising inventory levels at LME warehouse which extended a ninth weekly advance also dragged the prices lower. Stockpiles climbed 0.7% to 286,475 tons and are at the highest level in almost a year, bourse data showed Monday.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.60, above which gains could be extended to 2.618 levels. Meanwhile, support is seen at 2.52 levels, below which it can extend losses to 2.50 levels.
Chinese data weigh
The red metal trades at 2.537 levels, recording a -1.72% loss on the day, having previously posted day’s low at 2.530 and day’s high at 2.588 levels. Copper prices extended losses after bearish Chinese trade balance and inflation data highlighted persistent weakness in the economy, dampening the demand for the Industrial metal. Moreover, traders continued to wind up positions ahead of the Lunar New Year holidays next week.
Further, rising inventory levels at LME warehouse which extended a ninth weekly advance also dragged the prices lower. Stockpiles climbed 0.7% to 286,475 tons and are at the highest level in almost a year, bourse data showed Monday.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.60, above which gains could be extended to 2.618 levels. Meanwhile, support is seen at 2.52 levels, below which it can extend losses to 2.50 levels.