9 Jan 2015
Copper falls as softer Chinese data weigh
FXStreet (Mumbai) - Copper futures on Comex extended losses during the European session, slightly pulling off from fresh five year lows hit couple of hours ago, as recent bearish Chinese data triggered fresh concerns over the country’s economic growth.
The red metal trades now at USD 2.754/ pound, down -0.58% on the day, retracing slightly from fresh five year lows of 2.739 hit earlier in the session. Copper prices continued its downtrend as subdued Chinese CPI data and lower than expected factory-gate prices sparked fresh concerns over weakening demand in the world’s top consumer of the red metal, which caused the prices to hit five year lows.
Moreover, oversupply concerns on the back of rising inventory levels at Shanghai and LME warehouses continue to exert pressure on the red metal prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.78, above which gains could be extended to 2.82 levels. Meanwhile, support is seen at 2.74 levels, below which it can extend losses to 2.72 levels.
The red metal trades now at USD 2.754/ pound, down -0.58% on the day, retracing slightly from fresh five year lows of 2.739 hit earlier in the session. Copper prices continued its downtrend as subdued Chinese CPI data and lower than expected factory-gate prices sparked fresh concerns over weakening demand in the world’s top consumer of the red metal, which caused the prices to hit five year lows.
Moreover, oversupply concerns on the back of rising inventory levels at Shanghai and LME warehouses continue to exert pressure on the red metal prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.78, above which gains could be extended to 2.82 levels. Meanwhile, support is seen at 2.74 levels, below which it can extend losses to 2.72 levels.