Copper futures dropped in New York and London trading, driven by a rising dollar that sent some commodity futures brokers and traders into profit-taking mode.
Copper futures for delivery in two months slipped 10.4 cents to $3.765 per pound on the Chicago Mercantile Exchange's Globex electronic commodities exchange.
On the London Mercantile Exchange, copper futures dropped $8.50 to $377.85 per metric ton; overall, the contract has gained about 25 percent this year.
"Copper followed the currencies initially," Randy North, a trader at RBC Capital Markets in New York, told Bloomberg News. "But there appears to be a bit of profit-taking around now."
Other base metals like zinc, tin and aluminum also fell. In larger terms beyond the effects of currency, it's hard to tell how the prices of the metals will move going forward.
"There has been mixed macro data recently, so it provides little guidance as market participants ponder over the size and format of more quantitative easing in the U.S.," Andrey Kryuchenkob, an analyst at VTB Capital in London, told Bloomberg News.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.