Mumbai, 18 Jun (Commoditiescontrol): Copper prices approached three-week lows on Thursday, driven by the absence of new stimulus measures from a key political meeting in China and investors pivoting to gold in anticipation of earlier interest rate cuts by the U.S. Federal Reserve.
As of 4:15 PM IST, three-month copper on the London Metal Exchange (LME) fell 1.4% to $9,503.5 per metric ton, marking its lowest level since June 28.
"Copper is being hammered. Nothing new is coming out from Beijing," commented Alastair Munro, senior base metals strategist at brokerage Marex.
The Chinese government released a communique on Thursday following a closed-door meeting of the Communist Party's central committee, but it lacked details on new policy changes despite the ongoing financial challenges.
The lack of policy support for the Chinese economy, which consumes half of the world's copper, could negatively impact the metal's demand prospects. China's June copper imports dropped to a 14-month low, while LME-registered copper inventories surged to a 33-month high of 221,100 tons, according to LME data.
Investors' shift from copper to precious metals has also pressured prices, Munro added, noting significant trades driven by a bleak economic outlook. Gold prices hit a record high on Wednesday, buoyed by expectations of a U.S. interest rate cut as early as September. Lower rates typically enhance the appeal of non-yielding bullion.
(By Commoditiescontrol Bureau; +91-9820130172)
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