Copper futures slumped on Monday, undercut by a rallying dollar and weaker risk sentiment in global markets. While the dollar gained over 50 basis points against a basket of six competing global currencies, copper futures for December delivery lost 2.65 cents to $3.664 per pound on the Comex – the biggest single-day loss for the most-active futures contract since September 10, according to Bloomberg News.
"Copper is floating a little on the stronger dollar," Frank McGhee, the head dealer at Integrated Brokerage Services in Chicago, told the news service. "We're seeing some technical profit-taking."
Aside from the the fluctuations of the greenback, Chinese industrial demand and consumption have been the major factors driving the price of the red metal. Copper futures have gained more than 25 percent since July 1st, as China looks poised to power strongly out of the global economic slowdown and began producing and selling more good overseas.
Construction by itself consumes a quarter of all copper produced globally, and China's been on a building binge lately.
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