Copper futures closed on the downside on Tuesday after that the market did not manage to hold the won positions above 3,5 dollar/pound amid the economic uncertainty. By the end of the deals on COMEX copper futures with December delivery reduced by 2,35 cents or 0,7% to 3.481 dollar/pound. The biggest part of the session the copper was trading in a sideward trend, as the traders did not take a chance to open big positions before the publication of the US FRS statement later this Tuesday, and also potential signs of metal demand lowering in the developing countries.
The recent growth on the copper market has led to disputes about if the current prices really reflect the global economic recovery or not. The December contract price exceeded the mark of 3.50 dollar/bushel for the first time since April, but afterwards, a small rollback took place.
The FRS statement publication resulted in the price upturn from the day mnimum, as the FRS gave a sign that it is ready to take additional measures of quantitative easing, if it is necessary that has impacted the dollar negatively. The greenback weakening often lends support to copper prices, turning them down for the consumers using other currencies.
Earlier copper futures rose after the Commerce Department of the USA reported that the new house construction of the USA ticked up in August to 598 000. The analysts forecasted that the indicator will amount to 550 000 last month. The copper is sensitive to such news as this metal is widely used in the construction.
