Copper futures decline on Fed taper news
Investing.com
Published Dec 19, 2013 05:32AM ET
Copper prices fall after Federal Reserve announces taper plans
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.290 a pound during European morning trade, down 0.85%. Comex copper prices fell by as much as 1% earlier in the day to hit a session low of USD3.287 a pound.
Copper prices were likely to find near-term support at USD3.279 a pound, the low from December 13 and resistance at USD3.330 a pound, the high from December 18.
The March contract settled 0.08% lower on Wednesday to end at USD3.319 a pound.
The Fed announced Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. In his last press conference as Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere on the Comex, gold for February delivery tumbled 2.4% to trade at USD1,205.40 a troy ounce, while silver for March delivery plunged 3.5% to trade at USD19.36 a troy ounce.
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Written By: Investing.com
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