Copper futures gained in value Tuesday amid conjecture that the U.S. central bank is set to pump additional liquidity into the U.S. economy, according to Bloomberg.
As the globe's second-biggest user of the reddish metal, the U.S. is under scrutiny as to whether it will engage in another round of asset purchasing. The most recent round, known as quantitative easing or more colloquially QE2, finalized in late June. With the U.S. Federal Reserve set to convene later this week for its annual symposium in Wyoming, all eyes are on fed chief Ben Bernanke.
"The important news this week will be obviously Bernanke's speech in Jackson Hole," analyst Andrey Kryuchenkov of VTB Capital in London told Bloomberg. "That's what people are waiting for."
At 8:27 a.m. on Tuesday, copper futures increased 1.89 percent, a 7.5 cent climb to $4.05 per pound.
Kitco News reports the scrutiny on Bernanke and the Fed is especially intense after the Standard & Poor's credit rating downgrade earlier this month as the stock market has weakened. It was at last year's symposium where he first alluded to asset purchasing as a strategy to spur the world's biggest economy.
Risk Disclosure
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.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
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 third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.